Bitcoin falls to fresh lows as crypto crashes on ‘Black Monday’: Here are 3 reasons why
Crypto investors are seeing red this morning as the entire cryptocurrency market appears to be heading off a cliff. At the time of this writing, major cryptocurrencies are down as much as 16% or more in the past 24 hours, according to data from CoinDesk.
Both Dogecoin and Ether are currently down 16%, Solana is down over 15%, and Shiba Inu is down over 11%. Other coins, including Tron and ApeCoin, are currently down over 17%. And of course, the crypto king, Bitcoin, is down over 12.5%. This is particularly notable because Bitcoin has now fallen to below the $24,000 mark for the first time since December 2020.
But just what is causing this crypto crash? These are the three main reasons, according to CNBC:
I have USDC in my account that I want to use to repay my loan that has a margin call right now, but I can’t even repay the damn loan because of the transfer freeze. That’s ridiculous. If the market tanks, celsius will liquidate my collateral even though I can pay off my loan!!!
— FlyingSpoon (@flyingspoon8891) June 13, 2022
Some people on social media are referring to today as “Black Monday.” So where does crypto go from here? No one knows for sure, but Vijay Ayyar, vice president of corporate development at cryptocurrency exchange Luno, told CNBC that the bottom may not have hit yet. Ayyar noted that Bitcoin is currently down 63% from its November 2021 high. But in previous bear markets, it has fallen as much as 80% from its previous highs. “We could see much lower Bitcoin prices over the next month or two,” he said.
(40)