Page 22 - Issue-En-44

ELITE
Vol.1

Issue 44

June 2022

The Bitcoin Crash: What

Happened?

Mariam Younis second level,economics

The value of bitcoin continues to fall. “This company has offered its users to place
Saturday, June 18, it fell to 18,740 dollars, a their cryptocurrencies, such as Bitcoin, to
drop of 9% compared to the day before. This invest in new virtual currencies. With regard

is the lowest level since December 13, 2020. to Babel Finance, the company said it would
Since the historic peak in the value of this suspend all withdrawals due to
currency which was exactly $68,991 in "extraordinary liquidity pressures". A brief
November 10, 2021, we have therefore freeze on Bitcoin’s withdrawal from the
marked that the digital currency has lost world’s largest platform, Binance, also
more than 72% of its value. We can relate contributed to a lack of desire for
this fall to the increment of the interest rate; cryptocurrency.
The cryptoasset market is suffering from “It looks like we are entering a recession
high interest rates set by the US Federal after an economic boom of over 10 years,”
Reserve [FED] and the European Central said co-founder and CEO Brian Armstrong,
Bank [ECB] to fight inflation, ending a long one of the reasons for the massive layoffs
period of free funds that are conducive to
speculative investment. It also suffers from a
general wave of distrust of this decentralized
and unregulated funding, aggravated by the
collapse of TerraUSD’s (UST) stability a
month ago, which lost 99.8% of its value in
a few hours.

Extraordinary pressure on liquidity”
21 In the context of the collapse, Celsius

Network LLC, a cryptocurrency lending
company based in Hoboken, New Jersey,
has announced a pause in withdrawals and
transfers.