What are cryptocurrencies? | Decomplicated
Bitcoin has crashed below $24,000, reaching its lowest levels since the end of 2020.
More than $200 billion has been wiped off the entire cryptocurrency market on Monday morning.
It is the latest in a series of price crashes for the cryptocurrency, which has seen it drop more than 60 per cent in value over the last seven months.
While many crypto holders are liquidating their assets, crypto lender Celsius told customers that they would be temporarily unable to withdraw funds from the platform.
Crypto exchange Coinbase has also announced that it is culling over 1,000 employees after previously rescinding job offers. The company made $800 million last year.
Crypto prices this morning
Today, BItcoin is down 6.13 per cent to $21.072. Ethereum is down 8.52 per cent to $1,114.08.
Adam Smith15 June 2022 08:32
MicroStrategy says it can withstand further volatility
US software developer MicroStrategy says it has not received a margin call against its bitcoin-backed loan, and could withstand more volatility in the crypto market.
“We can always contribute additional bitcoins to maintain the required loan-to-value ratio,” MicroStrategy said in a statement, according to Reuters.
“Even at current prices, we continue to maintain more than sufficient additional unpledged bitcoins to meet our requirements under the loan agreement,” the company reportedly said.
Vishwam Sankaran15 June 2022 07:30
Bitcoin could tank further if it slips below $20K, expert says
Arthur Hayes, former BitMEX chief, has said if bitcoin’s value dips below the $20,000 mark, a “massive sell pressure” may ensue, which could further drive down prices of the leading cryptocurrency.
Ethereum’s price could also be impacted in a similar way if it slips below $1000, he said.
“If these levels break, $20k $BTC & $1k $ETH, we can expect massive sell pressure in the spot markets as dealers hedge themselves,” Mr Hayes said.
“We can also expect that there will be some otc dealers and that will be unable to hedge properly and might go belly up,” he added.
Vishwam Sankaran15 June 2022 07:00
Bill Gates slams crypto as based on ‘greater fool’ theory
Bill Gates has dismissed crypto projects like NFTs as shams based on the “greater fool” theory.
Speaking at a climate conference on Tuesday, hosted by TechCrunch, the billionaire reportedly said he is neither long nor short on the entire sector.
“Obviously, expensive digital images of monkeys are going to improve the world immensely,” Mr Gates said sarcastically, according to Bloomberg.
Vishwam Sankaran15 June 2022 06:20
Wall Street watchdog asks laid-off crypto employees to work with them
The chief of US Financial Industry Regulatory Authority (FINRA) Robert Cook has said the company is planning to increase its resources to monitor cryptocurrencies.
Amid the ongoing layoffs and hiring freezes by crypto firms including Coinbase, Blockfi, and Crypto.com, FINRA has said it wants to “bulk up” its capabilities to understand cryptocurrencies better.
“We’re going to need to be engaged and prepared to have the resources to do that, so anybody who is getting laid off from a crypto platform and wants to work for FINRA, give me a call,” Mr Cook said, according to Reuters.
Vishwam Sankaran15 June 2022 05:40
Crypto has ‘not moved in step with traditional assets’
“[Cryptocurrencies] have in the past not moved in step with traditional assets such as equities, however in recent times the link between the two has grown ever closer,” Simon Peters, an analyst at the online trading platform eToro, wrote in a note on Monday.
“Now the clearest signal yet that cryptoassets such as bitcoin and ether are moving in lockstep with equities has flashed, as inflation worries have sent stocks and crypto tumbling. The reasons for this are varied, but much of it comes down to institutional holders, which calibrate their risk assets in similar ways, be they tech stocks or bitcoin.”
Adam Smith15 June 2022 05:00
Bank of England chief warns people about crypto investment
Bank of England governor Andrew Bailey has warned people to prepare for huge losses if they invest in digital assets.
“If you want to invest in these assets, OK. But be prepared to lose all your money,” Mr Bailey said on Monday amid the crypto market crash as Celsius Network froze withdrawals and transfers between accounts citing “extreme market conditions”.
Vishwam Sankaran15 June 2022 04:40
Bitcoin, altcoins marginally rise in value
Bitcoin has grown by about 3 per cent compared to its value a day earlier.
However, the leading cryptocurrency is still hovering around the $22,000 mark over the last 24 hours.
Other top cryptocurrencies, including ethereum, cardano, and dogecoin, have surged by about 8 to 10 per cent in the last day, but are still down by 25 to 30 per cent compared to their values a week earlier.
The overall crypto market is up by about 4 per cent in the last 24 hours but its value is still below the $1 tn mark.
Vishwam Sankaran15 June 2022 03:34
Coinbase says a ‘crypto winter’ could come
Crypto exchange Coinbase will sack 18 per cent of staff amid fears of an incoming “crypto winter”.
Brian Armstrong, Coinbase’s chief executive and co-founder, said that he admitted the company had grown too quickly and was to blame for at least some of its problems.
But it now faced a situation in which it had to sack a large proportion of its staff in order to keep the company secure through any future economic downturn, he said.
Coinbase employees were to receive emails from HR to tell them if their job was affected, he said. Those would be sent to their personal email addresses, since the people being sacked would immediately lose access to the company’s systems.
Adam Smith15 June 2022 02:00
El Salvador says financial risk is ‘minimal’
As the crypto market continues to crash, El Salvador’s bitcoin stockpile is now worth less than 50 per cent of the price it acquired it for following the latest crypto market crash.
The losses, which total more than $50 million, pose an “extremely minimal” fiscal risk for the Central American country, according to Finance Minister Alejandro Zelaya.
“When they tell me that the fiscal risk for El Salvador because of bitcoin is really high, the only thing I can do is smile,” he said according to Reuters.
“The fiscal risk is extremely minimal. 40 million dollars does not even represent 0.5 per cent of our national general budget.”
The IMF “stressed that there are large risks associated with the use of bitcoin on financial stability, financial integrity, and consumer protection, as well as the associated fiscal contingent liabilities.”
Adam Smith14 June 2022 23:00