Bitcoin experiences worst month in history as over $400B is wiped off crypto market in June

The crypto industry experienced the worst month in history, with more than $ 400 billion wiped from the market by the surrender of digital assets in June.

#Bitcoin Trying to close -40% in June
– The worst moon ever! 🤨 pic.twitter.com/rQ2JckE7rF

— Bitcoin Archive 🗄🚀🌔 (@BTC_Archive) June 30, 2022

Bitcoin (BTC) and Ethereum (ETH) were one of the worst performing digital assets this month, with each losing an average of 40%.

Bitcoin and Ethereum trade at new lows

As of June 1, 2022, BTC was trading at over $ 31,000 and had a market capitalization of approximately $ 607 billion.

However, at the end of the month, the value of its flagship crypto assets fell to $ 18,945, with a market capitalization of $ 361 billion. This significant decline means that assets are trading 71% away from record highs.

Meanwhile, ETH started at $ 1994 in June, temporarily surrendered to less than $ 1,000, and then recovered slightly to the June 30 value of $ 1098.

ETH is now 78% below record highs, with market capitalization down from $ 220 billion in early June to the current $ 125 billion.

On the other hand, this is the first time Bitcoin and Ethereum have crashed below the ATH of the previous cycle.

Stakeholders blame the federal government

Cryptographic stakeholders have blamed the Federal Reserve for the collapse of the crypto industry.

In one interview, FTX CEO Sam Bankman-Fried said rising interest rates were the main reason for the plunge in cryptocurrency prices.

He said,

Core driver [the crypto downturn] It was the Federal Reserve Board. Those who have money are scared.

Another person stock SBF’s opinion is Danmore Head, the boss of Panthera Capital. According to him, the Fed has made two major mistakes, and the crypto industry is paying for them.

Inflation hit a record high in June, forcing the Fed to raise interest rates significantly. Some analysts believe that further increases are still possible, which could further impact investors’ spending capacity.

Stablecoin is powerful

Bitcoin and other cryptocurrencies have struggled to keep prices and be smart from the crash of the Terra ecosystem, but fiat stablecoin is faithful to its name.

according to data According to CoinGecko, Stablecoin’s dominance increased by 5% last month.

Binance USD (BUSD), USD Coin (USDC), Tether (USDT), and DAI have confirmed that their advantage has increased to 64.5% of space. These assets now account for more than 15% of the total market capitalization of the crypto industry, up from 10% at the beginning of June.