Bitcoin value goes down and down, dragging all other cryptocurrencies along with it. These are the reasons for the crash.
Bitcoin is currently in the descent again.
© Shutterstock.com / 3Dsculptor
The Bitcoin crash continues and all other cryptocurrencies are also affected. According to Coindesk, the current value of Bitcoin is only 21,620 euros (as of 8:50 a.m.). The value fell by another ten percent within the last 24 hours. At times, Bitcoin was even traded at a value of less than 20,000 euros. “Bitcoin had a very, very, very bad day,” notes Coindesk in a recent analysis.
Overall, bitcoin has fallen deeply: in November 2021, bitcoin had reached a new high of over 66,000 euros. Shortly thereafter, the initially slow descent slowly started, which has now accelerated again within the last week and especially days. Bitcoin was last worth less than 22,000 euros in December 2020.
Current bitcoin price – that’s how much BTC, ETH & Co. are worth now
Crypto market cap drops below $1 trillion
All other popular cryptocurrencies are also affected by the crypto crisis: Ethereum, for example, is currently only worth 1,175 euros. According to Coinmarketcap, the market cap of all cryptos has fallen below $1 trillion in the past few hours, the lowest since February 2021.
Reasons for the loss of value of Bitcoin & Co.
Experts see several reasons for the high loss in value of Bitcoin and Co. These include, for example, the high inflation that prevails in many countries. The economy and trade in many countries are also suffering as a result of the Russian war of aggression in Ukraine and the associated uncertain economic prospects. The stock exchanges are also affected by this, but the effect on cryptocurrencies is even greater.
The message from the crypto lending company Celsius, which announced on Monday, according to a report by CNBC, that it would initially pause all transactions for its more than 1.7 million customers due to the “extreme market conditions”, has also caused unrest in the last few hours.
In a recent report, the US IT site The Verge points out that Bitcoin mining is becoming less attractive as cryptocurrency prices fall. This particularly affects miners who use older hardware that has a comparatively high power consumption.
Bitdeer calculates in
a tweet before
that depending on the mining rig used, mining is no longer profitable at a bitcoin price of less than 25,000 US dollars because the electricity costs exceed the mining income.
💡For your information, we publish the latest list of the Shutdown Price below which crypto mining machines in this chart will have to be shut down for lack of profitability. pic.twitter.com/qxGtLjJI9l
— Bitdeer (@BitdeerOfficial) June 13, 2022