Bitcoin and Ethereum were among the worst performing digital assets of the month as they both lost an average of 40% of their value, respectively.
As of June 1, 2022, BTC was trading at over $31,000, and its market capitalization was around $607 billion.
However, by the end of the month, bitcoin’s value fell to $18,945, and its market capitalization to $361 billion. This massive decline means that the asset is trading at 71% of its historic peak.
— Bitcoin Archive 🗄🚀🌔 (@BTC_Archive) June 30, 2022
On the other hand, ETH started June at $1994, briefly capitulated below $1000 before recovering slightly to $1098 – its value on June 30. ETH is currently 78% below its all-time highand its market capitalization has fallen from $220 billion at the start of June to $125 billion currently.
This is the first time Bitcoin and Ethereum have crashed below a previous cycle ATH.
Industry players accuse the Federal Reserve of being responsible for the collapse of the cryptocurrency industry
FTX CEO Sam Bankman-Fried said in one of his interviews that rising interest rates are the main reason for the crypto price crash.
He stated ,
The main driver of [la baisse de la crypto] was the Fed. People who have money are afraid.
Another who shares SBF’s view is Pantera Capital boss Dan Morehead. According to him, the Fed made two huge mistakes, and the cryptocurrency industry is paying the price.
Inflation peaked during the month of June, forcing the Fed to raise interest rates considerably. Some analysts believe that further increases are still possible, which could further affect investors’ ability to spend.
Stable currencies hold firm
As bitcoin and other cryptocurrencies struggled to maintain their prices and recovered from the collapse of the Terra ecosystem, fiat-linked stablecoins are aptly named.
According to data from CoinGecko, stablecoin dominance has increased by 5% over the past month.
Binance USD (BUSD), USD Coin (USDC), Tether (USDT), and DAI saw their dominance increase to 64.5% of the space. These assets now account for more than 15% of the market capitalization of the entire cryptocurrency industry, up from 10% at the start of June.
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