The cryptocurrency market continues its steep decline, with major assets like Bitcoin and Ethereum hitting multi-year lows amid worsening bearish sentiment.
Market Overview: Extreme Volatility Strikes Crypto
- Bitcoin briefly touched $25,000 on June 13, marking a 7.4% daily drop—its lowest level since December 2020
- Ethereum faced sharper declines, crashing below $1,400 with an 11.01% daily loss (March 2021 low)
- Total crypto market cap now stands at $1.07 trillion, down 7.6% in 24 hours and 62% from November 2021's peak
👉 Why are crypto prices crashing? Get real-time market analysis
Derivatives Market Carnage
The extreme volatility triggered massive liquidations across trading platforms:
| Asset | 24-Hour Liquidations |
|---|---|
| Bitcoin | $163 million |
| Ethereum | $143 million |
| DeFi Loans* | $12.7 million |
*Includes Aave ($4.5M), Compound ($6.8M), MakerDAO ($1.4M)
Emerging Crisis: stETH Depegging and Celsius Fallout
Two critical developments are exacerbating market panic:
1. Lido's stETH Liquidity Crisis
- 410M ETH (32% of staked ETH) locked in Lido's protocol
- stETH/ETH exchange rate fell to 0.947:1 on Curve as liquidity pools became imbalanced
- Major holders like Celsius Network face compounded risks
2. Celsius Network's Collapse
- Suspended all withdrawals and transfers on June 13
- CEL token plunged 60%+ following the announcement
- Potential bankruptcy could trigger wider market contagion
Macroeconomic Pressures Mount
With the Federal Reserve's FOMC meeting on June 14, traders anticipate:
- Potential 75bps interest rate hike
- Hawkish signals from Chair Jerome Powell
- Extended crypto market downturn if dollar strengthens
👉 How to protect your portfolio during market crashes
FAQ: Understanding the Crypto Crash
Q: Why is Bitcoin dropping so sharply?
A: Combination of macroeconomic uncertainty, institutional liquidations, and contagion from failed projects like Terra/Lido.
Q: Is Ethereum's merge still happening?
A: Yes, but stETH depegging reveals liquidity risks in staking derivatives that may delay some institutional participation.
Q: Should I buy the dip now?
A: Extreme volatility makes timing the bottom risky. Dollar-cost averaging and thorough research are recommended.
Q: How low can crypto prices go?
A: Technical analysts watch $20K Bitcoin and $1K Ethereum as critical support levels from previous cycles.
Q: Are more companies like Celsius at risk?
A: Yes—any platform offering high-yield crypto products with leveraged positions faces liquidity challenges in this environment.