Coin Week

  • bitcoinBitcoin$28,340.005.75%
  • ethereumEthereum$1,809.545.23%
  • binancecoinBNB$317.222.73%
  • rippleXRP$0.5717.10%
  • dogecoinDogecoin$0.0759735.08%
  • solanaSolana$21.157.08%

A Look Into the June 6 Crypto Market Crash

Another crypto market crash occurred on June 6, further making waves on the crypto space
Another crypto market crash occurred on June 6, further making waves on the crypto space

The crypto market crashing is nothing new in the space, but this year saw the market crash with significant losses in May. However, two days ago, the market saw another crash that saw popular digital assets fall significantly in value. 

All eyes have been on Bitcoin, the most popular of the bunch, as it continues to fall further. Many cite the decline of key stablecoins and macroeconomics as crucial factors in this downward spiral. In addition, Crypto investors expected the technology’s decentralized character would grant it immunity to inflation and other problems, but that doesn’t seem to be the case. 

On Monday, a batch of documents started circulating on social media. According to reports, it was the 600+ page U.S. Crypto Bill. Crypto enthusiasts on Twitter emphasized the gray zones on the leaked bill, predicting that the crypto space would become more restrictive in the future.

Binance suffered an 8% drop on its BNB coin, an 11.31% drop in the price over the past week. However, it managed to recover, selling at $288.98 on CoinMarketCap as of this writing.

While other coins suffered heavy losses, BNB was among the few coins that saw a price increase. However, due to the increase, a sudden price drop surprised BNB investors and traders.

One of the speculated factors behind the drop is the U.S. SEC’s investigation into Binance to see if it violated U.S. securities regulations.

Meanwhile, the announcement of the DELX exploits led to a sharp decline for the EGLD, selling at $63.38 as of this writing.

The drop in price can be traced to a broader virtual asset market rise in the last 24 hours. Apart from stablecoins, ELGD and PAXG (a gold-backed ERC-20 token that monitors the dollar per ounce price) have seen price declines from the top 100 tokens.

The consistent decline in Bitcoin prices has become a norm. Although several coins peaked in November last year, asset markets have been experiencing a correction after the Fed’s aggressive liquidity tightening signals.

Market experts believe there is a strong correlation between the traditional and cryptocurrency markets. So if one falls, the other is expected to follow.

Opinions expressed by Coin Week contributors are their own.