Why the bitcoin fallen?

The value of the crypto market has now decreased by $2 trillion. These five startling details about Crypto's Black Monday

Investors had nowhere to run on Monday as the stock market, and cryptocurrency prices fell.

Investors are concerned the Federal Reserve will continue its aggressive interest rate hikes, increasing the likelihood of a U.S.U.S. recession. The sell-off came after yet another report of high inflation on Friday.

On Monday, the total market capitalization of the cryptocurrency market fell to just $980 billion, a decline of about 12%. Since its peak in November 2021, the sector has suffered more than $2 trillion in losses.

After cryptocurrency lender Celsius announced on Sunday that it was stopping transactions, withdrawals, and transfers on its platform due to "extreme market conditions," the cryptocurrency market took a significant fall. The biggest cryptocurrency exchange in the world, Binance, temporarily halted withdrawals but has subsequently restored operations, attributing the interruption to a "few small technical problems."

The terrible news doesn't even begin there. Monday was a bad day for cryptocurrencies. Here are five startling statistics that demonstrate how pessimistic the market has grown.

1. Bitcoin has fallen to its lowest point since 2020.

The most valuable digital currency in the world, Bitcoin, dropped more than 13 per cent on Monday, reaching a low below $23,000 for the first time since 2020. After this year's collapse, Bitcoin is only 20% above its highs from the previous crypto market in December 2017, despite a massive surge in 2020 and 2021.

Some industry observers have cautioned that things could get worse before they get better, even though fans are still "buying the dip."

1. Elon Musk and Michael Saylor's Bitcoin stakes are roughly $1.5 billion in the red.

Elon Musk, C.E.O. of Tesla, and Michael Saylor, C.E.O. of MicroStrategy, have suffered during the crypto winter this year, losing billions on trades that had previously been profitable.

In February 2021, Tesla paid $1.5 billion, or around 44,000 Bitcoin, and for a brief period, Musk and his business were large winners as the cryptocurrency experienced a sharp price increase. But with Monday's defeats, the situation has changed. Even after earning $128 million in March of last year, Tesla is still over $500 million in the red on its Bitcoin wager on paper. However, it's possible that since its previous S.E.C. filing, Tesla has sold more Bitcoin.

In the meantime, Saylor, who has promoted his business intelligence company MicroStrategy as a sort of fictitious Bitcoin ETF, is also losing money on his Bitcoin investments following Monday's decline.

Over the past three years, Saylor spent approximately $4 billion on 129,218 BTC, although his assets are valued at more like $3.1 billion. The C.E.O. could also be subject to a margin call on the loans he used to purchase Bitcoin. Famously, Saylor stated that MicroStrategy has no intention of selling its Bitcoin assets.

1. Stablecoins are displaying destabilization symptoms.

This week's ongoing turbulence in the stablecoin market has been concerning because the recent collapse of the stablecoin TerraUSD is still fresh in many people's minds in the crypto community.

On Monday, the decentralized USD (U.S.D.D.) token of the Tron Network briefly lost its one-to-one peg to the U.S.U.S. dollar, prompting the Tron decentralized autonomous organization (D.A.O.), or the community-led organization that administers the currency, to deposit 700 million USD Coin (U.S.D.C.) to protect the peg.

In a worst-case scenario, according to founder Justin Sun, he would invest $2 billion to stabilize the so-called stablecoin. Sun also claimed that short-sellers were to blame for Monday's 15% decline in the value of his cryptocurrency Tron.

1. As prices decline, some Bitcoin mining equipment is being shut down.

Due to the sharp decline in the value of Bitcoin, businesses that were utilizing outdated computers to mine the digital currency had to shut them down on Monday since they could no longer do so profitably.

According to the Bitcoin mining portal Bitdeer, two popular Bitcoin mining devices, the Antminer S11 and AvalonMiner 921, have reached their "shutdown price" after Bitcoin fell below $24,000. As a result, shares of bitcoin mining companies Riot Blockchain and Hut 8 Mining fell by 10% and 12%, respectively.

1. The "fear and greed" rating for cryptocurrencies remains frozen at "severe fear."

The "fear and greed" index for cryptocurrencies, which gauges investor mood in the market, is also still at "severe fear" levels.

It reached just 11/100 on Monday, three points more than during the COVID-caused panic of March 2020. More gloomy days could be ahead. Investors pulled approximately $102 million out of cryptocurrencies just last week, according to a CoinShares study.
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