prices plunged over 9% and traded below the $21,000 mark on Tuesday as a part
of broader declines in cryptocurrencies after a sharp rise in US inflation
triggered risk-off sentiment. The digital token is down over 52% so far this
year, and trading over 70% below its record high of $69,000 it had hit in
November 2021. It plunged to the lowest in around 18 months after the freezing
of withdrawals by the Celsius lending platform added to concern that systemic
risk in the crypto ecosystem will accelerate the digital-asset market meltdown. 

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The global cryptocurrency market cap was at $936.70
billion, down 5.5% in the last 24 hours. However, the total cryptocurrency 24
hours trading volume is $93.40 billion. Traders are anticipating a more
aggressive pace of interest rate hikes from the US Federal Reserve after data
showed US inflation jumped to a fresh 40-year high in May, reported Bloomberg,
which triggered a selloff in risk assets including crypto and stocks.
Cryptocurrency prices have been in a slump this year as the Federal Reserve
withdraws stimulus and hikes rates to combat inflation.

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Bitcoin fear and greed index on Wednesday, June 15, 2022,
went from the extreme fear level of 8 to the level of 7 as per the alternative.
me. The Fear and Greed index is a technique for assessing investors’ emotions
toward the market.   

Bitcoin is currently trading at $20,610.86, down by
9.49%. In the last 24 hours, the highest it touched was $22,729.56 and the
lowest was $20,590.69. Bitcoin has a current market cap of $393,005,170,863. It
has a circulating supply of 19,067,868.00. BTC coins have a maximum supply of
21,000,000 coins.

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Crypto exchange Coinbase to lay off 18% staff

Digital currency exchange Coinbase said it will lay off
18% of staff, citing tight economic conditions and overly paid expansion as the
cryptocurrency market tumbles. The Coinbase layoffs correspond to about 1,100
positions, the platform said in a stock exchange filing. 

The “difficult decision” was made “to ensure we stay
healthy during this economic downturn,” CEO and co-founder Brian Armstrong
said in a statement. “We appear to be entering a recession after a 10+
year economic boom,” he added.

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The largest US digital-asset trading platform is
following in the footsteps of other cryptocurrency-related businesses that have
recently cut staff with a prolonged market downturn as the reason for the

Crypto contagion fears spread after Celsius withdrawals

Major US cryptocurrency lending company Celsius Network
froze withdrawals and transfers citing “extreme” market conditions, in the
recent sign of the financial market downturn hitting the crypto sphere.

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The Celcius move prompted a slide across cryptocurrencies,
with their value dropping below $1 trillion on Monday for the first time since
January 2021, sparking worries the rout might spill over into other assets or
hit other companies.

New Jersey-based Celsius, which has around $11.8 billion
in assets, offers interest-bearing products to customers who deposit
cryptocurrencies with its platform. It then lends out cryptocurrencies to earn
a return.