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$60B Wiped off Crypto Market as Bitcoin, Ethereum Tumble to New Lows

2 mins
Updated by Ryan James
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In Brief

  • Bitcoin and Ethereum value have crashed below $20k and $1k respectively.
  • The crash has wiped off $60 billion from the crypto industry market cap.
  • The industry is facing an unprecedented downturn due to macroeconomic situations like recession and rising inflation.
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In the early trading hours of June 18, the two flagship digital assets, Bitcoin and Ethereum, crashed by over 8%, respectively, pushing their price below the dreaded $20k and $1k level.

This massive decline has forced many liquidations in the industry. According to data from Coinglass, the industry has seen over $271 million liquidated in the last 24 hours. 

Apart from that, data from Coingecko shows that the industry has lost over $60 billion in the bloodbath. Per the data, the industry’s market cap has declined by over 6% in the last 24 hours to around $878 billion.

Interestingly, the last time Bitcoin and Ethereum values traded this low was 2020. This is also the first time that the assets are trading below the peak price of their previous bull run.

Altcoins also see losses

Other top ten digital assets like Dogecoin, BNB, Cardano, Solana, and Polkadot also lost an average of 7% of their values within the last 24 hours.

Binance CEO Changpeng Zhao, while speaking about this bear run, said that the crypto industry usually operates in a four-year cycle -two years of a bull run and two years of a bear market, an indication that this rut could be around for a while.

Explaining the Crash

The crypto industry in recent weeks has faced intense scrutiny since the crash of the Terra ecosystem, coupled with the fact that the space has had to deal with a global recession that has led to a flying inflation rate, a global pandemic alongside other factors like Russia’s invasion of Ukraine.

All of this put together has affected the economy of the world generally, and it is more telling on the crypto industry.

Meanwhile, the crypto industry has also had to deal with the contagion caused by Terra’s crash. Top crypto companies like Celsius, Three Arrows, Babel Finance, and several others have been facing solvency issues, causing more fears in the industry.

Also, crypto exchanges like Coinbase, Gemini, Crypto.com, and others have had to downsize due to the current market situation.

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Oluwapelumi Adejumo
Oluwapelumi believes Bitcoin and blockchain technology have the potential to change the world for the better. He is an avid reader and began writing about crypto in 2020.
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