• About
  • Contact
  • Privacy Policy
  • Terms and Conditions
The VR Soldier
  • Featured
  • News
  • Education
  • Reviews
  • Press Releases
  • Featured
  • News
  • Education
  • Reviews
  • Press Releases
No Result
View All Result
The VR Soldier

Bitcoin and Ethereum Price Manage to Hold Support as Stock Markets Jump Briefly

Bitcoin (BTC) is trading at $21.2k, while Ethereum (ETH) is trading at $1.1k

Mark Arguinbaev by Mark Arguinbaev
June 16, 2022
in News
Reading Time: 3 mins read
0
bitcoin ethereum price june 16th
Share on TwitterShare on Facebook

After incurring significant losses earlier this week, the Bitcoin and Ethereum prices managed to hold support this Thursday as stock markets jumped Wednesday afternoon briefly amid the Fed raising interest rates by 75 basis points to fight inflation. The last time interest rates were as high as they are right now was two years ago when the pandemic began, signaling a tremendous effort by the Fed to curb inflation and ease looming recession fears.

Bitcoin and Ethereum Price Incurs Significant Losses This Week

Despite holding support today, Bitcoin (BTC) and Ethereum (ETH) are still down over 30% this past week, as the global cryptocurrency market remains below the $1 trillion level, with a current market capitalization of $912 billion.

As Bitcoin has been following the stock markets price action this year, it is no surprise that the bloodshed has momentarily stopped today, as stock markets jumped late last night after the Fed announced a historic move to increase interest rates further to fight inflation.

On Wednesday, the S&P 500 jumped by 2% from a low of $3,748 to $3,822, NASDAQ jumped 2.7% from a low of $146 to $151, and the Dow Jones saw gains of over 2.4%, rising from a low of $30,277 to $30,996.

The brief stock market recovery is due to the decisive action by the Fed as a response to the recently released Consumer Price Index data, which signaled inflation isn’t quite slowing down as expected. High gas prices, and increasing mortgage rates, are all stark signs for the economy, and investors are pulling cash out of their investments as a result.

We can expect the stock market to continue its bearish action until CPI numbers and other indicators signal a slowing down of inflation and a recovering economy. Yet another indicator for a bullish reversal would be the decrease in gas prices, which somehow continue climbing to record highs.

Celsius Drama and Stablecoin Depeg Causing Additional Stress to Crypto Economy

The recent debacle with Celsius, a leading venture capital-backed lending platform, recently disabled withdrawals for all customers, causing market panic. While individuals were most affected by the platform’s actions, the leading stablecoin, USDT, was depegged briefly from its $1 when it was revealed that it has a significant position in Celsius.

Luckily, current reports indicate that USDT was able to liquidate its Celsius position with no losses, narrowly avoiding a similar catastrophe to the likes of Terra Luna.

Another algorithmic stablecoin struggling this week was Tron’s USDD, which depegged as low as $0.96 on Wednesday.

Tron USDD
Source: CoinMarketCap

Tron’s founder, Justin Sun, communicated to the community his actions of deploying billions in capital to defend the peg, which helped USDD recover to $0.98. However, things are still shaky as USDD is currently trading at $0.9747; whether the current level will hold is yet to be seen.

The Terra Luna, Celsius, USDT, and USDD uncertainty is causing substantial pressure on the crypto economy and is causing investors to lose confidence not only in cryptocurrencies but also in blockchain technology. If crypto is to survive this bear market, the industry needs to avoid scandals like Terra Luna from happening again, at least this year.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service.

Follow us on Twitter @thevrsoldier to stay updated with the latest Crypto, NFT, and Metaverse news!

Image Source: tolkachev/123RF

Tags: bitcoinEthereum
Previous Post

Is Blockchain Crypto Art “Real Art?” A Look Into NFTs

Next Post

Top 3 Pokemon-inspired Metaverse Crypto Coins Below $2 Million Market Cap (June 2022)

Next Post
pokemon-inspired metaverse crypto coins

Top 3 Pokemon-inspired Metaverse Crypto Coins Below $2 Million Market Cap (June 2022)

Web Stories

WLUNA Contract Bridge Spells Trouble for the Terra Luna Community
Top 3 Metaverse Projects to Buy Virtual Real Estate in
Top 3 Pokemon-inspired Metaverse Crypto Coins
Top 5 Metaverse Crypto Coins to Buy in January 2022

Upcoming Crypto Conferences

Jul 29
10:00 am - 3:00 pm

Web3 Delight Lagos

Dec 1
December 1 - December 2

MetaVentures Bangkok

Jan 13
January 13, 2023 - January 15, 2023

World Crypto Conference 2022 for the First Time Held in Zurich, Switzerland

View Calendar

Press Releases

Can Cat Coin Big Eyes (BIG) Compete With the Established Blockchains Uniswap (UNIT) And Polkadot (DOT)?
Press Releases

Can Cat Coin Big Eyes (BIG) Compete With the Established Blockchains Uniswap (UNIT) And Polkadot (DOT)?

by Tony Toreto
July 2, 2022

May and June have been two difficult months for cryptocurrencies, seeing the likes of upper-echelon networks such as Bitcoin (BTC),...

Read more
emerging NFT marketplaces

Three Emerging NFT Marketplaces You Do Not Want to Miss: Binance (BNB), Big Eyes (BIG), and Solana (SOL)

July 1, 2022
Web3 Delight Lagos – Breaking Barriers to Pave the Way for the Digital Future

Web3 Delight Lagos – Breaking Barriers to Pave the Way for the Digital Future

June 28, 2022
Will Cryptocurrencies Ever Stabilize? The Theory Behind Emerging Markets, With Amazon, Ethereum And BoostX

Will Cryptocurrencies Ever Stabilize? The Theory Behind Emerging Markets, With Amazon, Ethereum And BoostX

June 28, 2022
Buy The Dip Meme: CashFi (CFI), Dogecoin (DOGE) And Floki Inu (FLOKI) Are Three Cryptocurrencies You Want To Consider Before Your Next Investment

Buy The Dip Meme: CashFi (CFI), Dogecoin (DOGE) And Floki Inu (FLOKI) Are Three Cryptocurrencies You Want To Consider Before Your Next Investment

June 17, 2022
  • About
  • Contact
  • Privacy Policy
  • Terms and Conditions

© 2022 The VR Soldier

No Result
View All Result
  • Featured
  • News
  • Education
  • Reviews
  • Press Releases

© 2022 The VR Soldier

WLUNA Contract Bridge Spells Trouble for the Terra Luna Community Top 3 Metaverse Projects to Buy Virtual Real Estate in Top 3 Pokemon-inspired Metaverse Crypto Coins Top 5 Metaverse Crypto Coins to Buy in January 2022