What many crypto analysts were talking about did happen: due to the promised 8.6% increase in interest rates from the US Federal Reserve, sellers dominating the BTC market significantly increased pressure on the asset, as a result of which its value fell to $23,800 for the first time since December 2020. In parallel, the capitalization of the cryptocurrency market has fallen below $1 trillion and now stands at $975.7 billion, which is equivalent to the values of January 2021. The massive collapse affected not only crypto-gold, but also altcoins, so now we can confidently talk about market uncertainty, which puts pressure not only on the cryptocurrency, but also on the classical markets. Experts include in the list of key factors of the collapse not only the highest level of inflation in the United States over the past 40 years, but also the liberation war in Ukraine, the global energy crisis due to the aggressive actions of the RF, a number of local humanitarian and logistical crises, massive sales of assets in Asian markets, as well as the continuation of the Wall Street futures downtrend. At the moment, there is no backup scenario, and some experts are confident that the position of the crypto market will worsen. For example, the founder of venture capital fund Placeholder, Chris Berniske, stated that the 200-day average curve in the $BTC and $ETH pairs will continue to be tested for quite some time. ETH has fallen to $1209 and so far shows no signs of recovery.
The world's largest Bitcoin holding Microstrategy has already lost $713 million of its own and borrowed funds due to a sharp collapse in the rate of the crypto during the day. So far, the company has not sold any of the BTC coins from its reserve, but if their price falls below $21,000, Microstrategy will face a margin call and will be forced to either sell some Bitcoins or increase collateral on loans. At the moment, the company owns 129,218 BTC, the average purchase price of which is $30,700. That is, the compromise price of the fund fluctuates around $3.97 billion. If you convert this money into dollars at the current exchange rate, then it will be $3.25 billion. At the same time, the chances of falling to $21,000 are quite high. Recall that the company recently took out a loan from Silvergate for $205 million for a planned purchase of BTC. But even then, MicroStrategy was not doing very well, as the value of the company's shares has fallen by 64% since the beginning of 2022 and now they are trading at $203.36. Thus, one can conclude that the main business of the giant company, namely software development, cannot bring in enough profit to service current debts. However, the CEO of MicroStrategy, crypto evangelist Michael Saylor, is optimistic and is not going to sell digital assets even after a margin call.
Renowned Hollywood actor Matt Damon recently starred in a viral Crypto.com promo that sparked outrage in the crypto community as the actor, who is worth an estimated $170 million, did not own any cryptocurrencies or other digital assets prior to the critiques of crypto enthusiasts. He later admitted to being an investor in Crypto.com, but that didn't make much of a difference as Damon's commercial directly encourages viewers to invest in cryptocurrencies. The video was also called "completely useless," as there is not a second of educational content during the entire video, and the actor's entire speech is reduced to populist sayings. At the same time, the actor is also accused of using FOMO triggers — sayings that cause listeners to fear missing out on profits. In addition, the clearly commercial video was filmed and distributed solely for profit and does not include any tools that could cover it up. In fact, there was a mutual blunder here: Damon fell for Crypto.com, and Crypto.com fell for the Damon. It turned out reciprocity for the sake of money.