Vancouver, Kelowna, Delta, BC – June 13, 2022 (Investorideas.com Newswire) Investorideas.com, a leader in crypto and blockchain investing news brings you today’s edition of the Crypto Corner podcast and commentary on what’s driving cryptocurrency stocks and the crypto market.
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Crypto Corner Podcast 853: Crypto Market Crashes Below $1T Market Cap as BTC and ETH Plummet, but BTC Hashrate Hits All-Time High
Crypto Market Crashes Below $1T Market Cap as BTC and ETH Plummet, but BTC Hashrate Hits All-Time High
The crypto market is an absolute bloodbath today with Bitcoin (BTC) having dropped to a trading price of roughly $23,250 USD at press time – its lowest since December 2020. This is a decline of approximately 17.4 percent in the past 24 hours alone, but follows a notable downturn beginning last Friday (June 10), and not to mention a rocky last couple of months. Similarly, Ethereum (ETH) has plummeted to a trading price of about $1,225, down around 19 percent in the past 24 hours. This crashing of the two largest cryptocurrencies by market cap has dragged much of the market with it, bringing the total crypto market capitalization to below $1 trillion for the first time since February 2021, according to data from CoinMarketCap.
CNBC cites factors such as “rampant inflation continuing and the U.S. Federal Reserve expected to hike interest rates this week to control rising prices,” as well as the crypto market’s general correlation with stock market trends as reasons for the crash. Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno, told CNBC:
“Since Nov 2021, sentiment has changed drastically given the Fed rate hikes and inflation management. We’re also potentially looking at a recession given the FED may need to finally tackle the demand side to manage inflation.
All this points to the market not completely having bottomed and unless the Fed is able to take a breather, we’re probably not going to see bullishness return.”
Ayyar went on to say:
“We could see much lower bitcoin prices over the next month or two.”
Cointelegraph reports that this crash coincides with an all-time high in Bitcoin’s hash rate – a network security measure based on computing power for mining – of 231.428 exahash per second (EH/s). An excerpt from the article highlights the strengths of the market, possibly offering a silver lining to today’s news:
Despite the market crash that threatens to wipe numerous crypto projects out of existence, the Bitcoin ecosystem continues to strengthen its core by consistently recording new ATHs for hash rate, network difficulty and network capacity.
In addition, the Bitcoin Lightning Network – the layer-2 technology built on Bitcoin – increased its capacity to 4,000 BTC, furthering its goal to enable faster and cheaper peer-to-peer BTC transactions.
With continued support from miners, traders and developers, Bitcoin remains well-positioned to be hosted on the most secure blockchain network in the world.
Sam Mowers, Investorideas
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