Bitcoin started below $ 20,000 in July. By June 18, the cryptocurrency had lost nearly 9% of its value in just one day. An unprecedented decline since the end of 2020, which confirms for some the crisis that has hit digital currencies.
Bitcoin is falling, its detractors are having fun – iStock.com / blinow61
The “collapse” of cryptocurrencies
On June 18, Bitcoin, the most popular cryptocurrency, took off below $ 18,600 at the end of the day on the east coast of the United States. This is its lowest value since December 13, 2020. On November 10, 2021, Bitcoin hit an all-time high of $ 68,991 and the digital currency has lost more than 72% of its value since then. On June 18, Eteherum, the second most popular digital currency, lost nearly 10% of its value. Equity markets collapsed the same week out of fear that central banks, faced with record inflation, were too aggressive. The cryptocurrency crash wiped out tens of billions of dollars of assets in just hours.
Bitcoin critics are having fun
The soaring fall in cryptocurrencies – and more specifically Bitcoin – last June only reinforced the arguments of their longtime detractors. At the general meeting of the Berkshire Hathaway holding last April, entrepreneur Warren Buffet once again declared the uselessness of Bitcoin, which “does not change anything, it produces nothing”. While Bitcoin is struggling to cross the $ 20,000 mark, Bill Gates, who has repeatedly stressed the volatility of digital currencies and their “environmental cost”, multiplies claims that discredit digital currencies. At the end of June, ECB President Christine Lagarde spoke at a hearing in Brussels about her willingness to strengthen cryptocurrency regulations. During a hearing in Brussels, Christine Lagarde spoke of a willingness to move towards new regulations for digital currencies. Two texts aimed at regulating cryptocurrencies are currently under discussion in the European Parliament. A historical critic of digital currencies and their lack of regulation, Christine Lagarde said during this hearing that “crypto-assets and decentralized finance have the potential to create a real risk to financial stability.”
Problematic lending platforms
If cryptocurrencies are in free fall, lending platforms are in big trouble. Celsius Network, the market-leading platform, announced in mid-June that it was freezing withdrawals and transfers for its 1.7 million customers, without specifying when they would be able to access their funds again. In the process, Coinbase announced the layoff of 18% of its workforce. Last May, the Stablecoin Terra platform collapsed, losing tens of billions of dollars in a matter of hours.
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