Why Is Crypto Down Today: Crypto Crash Sees Global Market Cap Drop Below $1 Trillion

If you're wondering why is crypto down today as we see almost every-single cryptocurrency lose value in June 2022, here's a look at what's happened.

After a fairly positive end to 2021, the crypto market suffered from various crashes and incidents in 2022. Whether the Luna crypto crash or the plethora of hacks that have happened this year, prices have trended downwards.

And now, the entire cryptocurrency market cap has dropped below the $1 trillion mark. Bitcoin and Ethereum are down 18% and 20% in the last 24 hours, respectively. Aside from stablecoins, no cryptocurrencies in the top 100 have reported price rises in the last day, and only one (LEO) in the last week .So, what explains the most recent crypto market crash in June 2022?

Why Is The Crypto Market Down June 2022

One reason why the crypto market is down today in June 2022 comes from holders' fears relating to inflation. While Bitcoin and crypto in general are often described as a hedge against inflation, this has not been the case since larger investors have onboarded.

While many in the cryptocurrency space see their investments as separate from the traditional stock market, major events still can impact their prices.

As traditional stocks continue to slide amid this inflation, so too has the crypto sell-off, with these often riskier assets being dumped as the bear market continues.

• Read More: UST 2.0: TerraUSD 2.0 Rumour Suggests A New Terra Stablecoin Could Launch

Alongside this, the various looming threats about further cryptocurrency regulation, both relating to Luna now that Luna 2.0 has launched and other crypto-related projects, are sure to place doubt in some holders' minds.

The crypto market has also been further damaged today by reports of the Celsius network halting withdrawals, stoking fears of its liquidity crisis.

Meanwhile, the Tron-backed stablecoin USDD threatens to depeg, drawing links to the TerraUSD collapse due to USDD's algorithmic stablecoin identity.

Of course, for some, crashes and bear markets offer the chance to buy the dip. SHIB holders have boasted about buying the dip, for example, while the Shiba Inu price added an extra zero.

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