Bitcoin falls almost 7% and hovers at $18,834

The bitcoin price fell 6.82% this morning (July 1) to $18,834.3

The negative performance of the bitcoin price is due to concerns about a recession in the US. Investors are concerned that the Federal Reserve’s accelerated rate hike and balance sheet reduction will reduce liquidity in the market. This could lead to the US economy falling into recession after a likely contraction of 1.6% in the first quarter of 2022.

Fed Chairman Jerome Powell confirmed yesterday that the Fed will continue to raise interest rates to contain inflation. Even if the US economy slows down.

Pacific Investment Management Co. (PIMCO), one of the world’s largest funds, has warned that the United States could face a recession in the next 12 months. Meanwhile, Europe is more vulnerable to a recession than the U.S.

Bitcoin was also hit by the announcement of a suspension of withdrawal services from Celsius Networks, one of the world’s largest cryptocurrency lending platforms. Withdrawals and transfers between all accounts are temporarily suspended as the market experiences high volatility.

Three Arrows Capital (3AC), a Singapore-based hedge fund focused on cryptocurrencies, has defaulted on more than $670 million worth of loans.

Voyager Digital, a digital asset broker, confirmed that 3AC was unable to repay a $350 million loan in USD Coin (USDC), a stablecoin pegged to the U.S. dollar, and a 15,250 BTC Bitcoin loan now worth about $323 million.

3AC struggled financially until it was unable to repay its debt after three weeks of intense volatility in the crypto market. The cryptocurrency market fell by hundreds of billions of dollars.

Currently, the total value of the crypto market is $950 billion. This is down from the peak of $3 trillion in November 2021.

The Spot Market is Open

Friday, July 1,2022

Crypto
Updated at
USD
Price

Change

%Change
10.25 BTC20,107.60+1,000.94+5.24
10.25 ETH1,080.60+58.58+5.73
10.25 LTC54.30+3.50+6.89
10.25 BNB224.15+14.86+7.10
10.25 XRP0.33+0.02+5.19
10.25 ADA0.46+0.02+5.33
10.25 DOT7.01+0.23+3.39
10.25 DOGE0.07+0.00+5.75
10.25 UNI5.00+0.31+6.64
10.25 LINK6.29+0.26+4.24

Leave a Reply

Change Language
%d bloggers like this: