The Bitcoin price is now under $25,000, Ether is under $1,200. Crypto companies are reacting to the downtrend. The major cryptocurrencies continue to fall. On the morning of June 13, 2022, Bitcoin broke below $25,000; at the time of publication of this article, the currency is trading at just under $24,300. Ether also continues to lose value and is below $1,200.
These levels are a far cry from last year's highs. The last time Bitcoin was at such a low rate was at the end of 2020, Ether in January 2021. Reasons for the ongoing downturn include fears of inflation. Since the announcement of the new inflation rates in the USA on June 11, 2022, cryptocurrencies have lost value again.
Together with worries about the general economy, the fear of inflation reduces the willingness to invest in stocks or cryptocurrencies. Potential buyers of crypto and shares expect to have to spend more money on everyday goods in the future, which is why they are acting cautiously in the markets.
Celsius no longer allows crypto transactions
The continuing fall in currency prices has meant, among other things, that transactions on the crypto credit exchange Celsius can no longer be carried out for the time being. The reason given by the platform is the "extreme market conditions", as reported by Reuters.
In addition, some mining companies are said to have stopped mining Bitcoin, at least for the time being, as reported by Finanzen.net. In view of falling prices, energy-intensive prospecting is becoming increasingly unprofitable. Some of the companies, meanwhile, have sold portions of their bitcoin reserves to cover their costs.
Reduced mining is already having an impact on ether's carbon footprint. In the past three weeks, 30,000 metric tons of CO2 are said to have been saved, which is said to be more than after the planned switch to Proof of Stake.