The crypto market has now lost $2 trillion in value. Here are 5 surprising crypto Black Monday facts

Investors had nowhere to hide on Monday as both the stock market and cryptocurrencies fell.

The defeat followed another high-inflation report on Friday, prompting investors to expect the Federal Reserve to continue aggressive interest rate hikes, thereby increasing the likelihood of a US recession.

The cryptocurrency market saw its own total market cap It’s only down about 12% to $980 billion on Monday. The sector as a whole has lost more than $2 trillion since its peak in November 2021.

The crypto market was hit hard after that Celsius crypto donor revealed on Sunday that it had suspended transactions, withdrawals and transfers on its platform citing “extreme market conditions”. The world’s largest crypto exchange, Binance, also briefly suspended withdrawals, but has since resumed operations he called adjournment Due to “various minor hardware glitches”.

All this is just the beginning of bad news. It was a dark day for cryptocurrencies on Monday. Here are five shocking facts that explain how bearish the market has become.

1. Bitcoin is now at its lowest level since 2020

The world’s leading digital asset, Bitcoin, fell more than 13% below $23,000 on Monday, its lowest level since 2020. Despite a dramatic rise in 2020 and 2021, after this year’s crash, Bitcoin is now more than 20% above its previous high. the peak of the crypto market in December 2017.

Followers still “buying dip”, some industry analysts have warned things it could get worse before it gets better.

2. Elon Musk and Michael Saylor are almost $1.5 billion underwater in Bitcoin bets

Tesla’s Elon Musk and MicroStrategy’s Michael Saylor have felt the pain this year in crypto winter, losing billions in previously profitable trades.

Tesla In February 2021 he bought $1.5 billion or roughly 44,000 Bitcoins, and for a while Musk and company were big winners as he saw a huge jump in cryptocurrency prices. After Monday’s losses, however, it is a different matter now. Tesla approx $500 million underwater even after winning $128 million in his Bitcoin paper bet in March of last year. Although it is likely that Tesla has sold more Bitcoin since its last SEC filing.

Meanwhile, Saylor, which has marketed its business intelligence firm MicroStrategy almost as a Bitcoin ETF of sorts, is also awash in Bitcoin purchases after Monday’s drop.

Saylor spent nearly $4 billion on 129,218 BTC in recent years, but his stake is now worth closer to $3.1 billion. And the general manager a margin call In the loans he used to buy Bitcoin if the cryptocurrency falls below $21,000. Saylor said MicroStrategy has no plans to sell its Bitcoin holdings.

3. Stablecoins are showing signs of destabilization

In recent times Stablecoin TerraUSD Fresh on the minds of many in the crypto-space, the ongoing turmoil in the stablecoin market this week has been a worrying sign.

The Tron Network’s decentralized token USDD (USDD) lost overnight against the US dollar on Monday, sending Tron’s decentralized autonomous organization (DAO), or the community-led group that oversees the currency, down 700. million USD Coin (USDC) to defend the peg.

Even creator Justin Sun said he would 2,000 billion dollars spread The so-called stablecoin is at its worst to stabilize, arguing that the 15% drop in its cryptocurrency Tron on Monday was the result of a concerted effort by short sellers.

4. Some Bitcoin mining machines are shutting down as prices drop

Bitcoin’s decline has been so dramatic that companies using older computers to mine the cryptocurrency shut down on Monday because they could no longer operate profitably.

Antminer S11 and AvalonMiner 921 – widely used Bitcoin mining machines – officially hit their “closing price” after Bitcoin dropped below $24,000, Bitdeer Bitcoin mining platform. Bitcoin mining stocks like Riot Blockchain and Hut 8 Mining sank 10% and 12%, respectively, as a result.

5. The crypto “fear and greed” index is stuck at an “extreme fear” reading

Cryptocurrencies’ “fear and greed” indexwhich gauges sentiment in the crypto market, it also remains stuck at “extreme fear” levels.

It reached 11/100 on Monday, three points higher than the March 2020 COVID-19 panic. And investors pulled about $102 million out of cryptocurrencies last week alone, according to CoinShares. the reportthere may be more dark days to come.

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