Looking at the ongoing situations that the crypto market is going through, the market is flooded with speculations
The market all around the world, especially the cryptocurrency market, is facing severe conditions that turned worse after a massive sell off started this week. This came in the wake of inflation reading for the May month released on Friday, but the market has turned towards the sell off on Monday that created more heat than expected all around.
This turned almost all the cryptocurrencies across the global crypto market into drastic declines that it saw after a long depressing situation where it had not marked any growth. It had not just stopped here, its repercussions went further than the industry. Many crypto lender firms including Celsuis have freezed theri withdrawal operations where several large crypto exchanges have ended up pausing transactions. Another cryptocurrency lending firm went on to lay off about 20% of its staff.
The overall crypto market has lost a significant amount of its value from its all-time high that it attained in November last year. From its $3 trillion market cap back then it has lost about two-third of its value and dipped up to $962 billion at the time of writing.
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President of the US subsidiary of 3iQ Digital, a Toronto-based investment manager firm Chris Matta said that inflation is going higher and this has led to a liquidity crisis all over cryptocurrency. Further, he said that in such moments of this liquidity crisis where things are starting to break soon.
At the time of writing on Tuesday, bitcoin has dropped significantly while trading below $22,000, with a loss of about 7.24% just in a short span of a day and hovering around its level that was around December, 2020. While other top cryptocurrency and smart contract blockchain Ethereum native token ETH has also dropped to $1,229 during the same period.
Furthermore, native token of the Cardano network, ADA, also went through the same fate until today when it started going up and showed a growth of about 8.15% in a day and trading at around $0.49. Among the top losers, Celsius lending protocol’s CEL token was included which was down by almost 21.5% on Monday but at the time of writing, surprisingly it rose up to 62%.
Source: https://www.thecoinrepublic.com/2022/06/14/are-things-starting-to-break-is-it-the-start-of-inflation/