Leading cryptocurrency Bitcoin fell below $20,000 and currently trades at around $19,400. In the last 24 hours, the price of the coin saw a 7% decline. The last time Bitcoin touched this level was in December 2020. Ether trades at around $1000. The global crypto market cap stands at $851 billion.
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Uncertainty in financial markets increased when on June 16 Fed announced raising interest rates by 0.75 percentage points. Following the news, prices of cryptocurrencies showed signs of recovery, but then started declining again.
The market crash has had a huge negative impact on crypto companies. Borrowing and lending company Celsius announced pausing swaps, withdrawals, and transfers between accounts. Hedge fund Three Arrows Capital couldn't meet lender margin calls and reported heavy losses.
Despite the current difficulties, Bitcoin's performance throughout history has been effective. In an interview with Bloomberg, MicroStaregy CEO Michael Saylor noted since August 10, 2020, when the company invested in the coin for the first time, Bitcoin's been up by 72%, and money supplies have been up by 17%, while gold and Nasdaq went down. Saylor believes Bitcoin is the most exciting investment idea.