Big Drop in Cryptocurrencies Drags Nasdaq Down to Full Blown Panic Sell

Bitcoin is rapidly losing its market value. This morning, June 13, Bitcoin dropped below $25,000 (for the first time since December 2020), and at the time of publication, the exchange rate was about $24,200.

The market capitalization of the main cryptocurrency is now as low as $490 billion. Over the past day, the drop widened to 6%, and over the week the cryptocurrency collapsed by 17.5%. The fraction of Bitcoin’s (BTC) circulation supply held on cryptocurrency exchanges has now fallen below 10%. According to the data provided by Santiment, the prominent crypto analytics firm, the percentage of BTC held on centralized exchanges currently stands at 9.9%. This level was last seen when Bitcoin hit a low of $3200 in December of 2018.

The general situation of such a rapid and concerted decrease in cryptocurrencies causes panic and fear of apocalypse among investors. This is especially true for the DeFi sector, which is directly tied to ETH value.

So, according to Parsec.finance, if Ethereum drops to $1100-1200, there will be about $900 million in DeFi liquidation pressure, mainly from the AAVE protocols Makerdao and Compound.

During the current crypto market correction, Ethereum fell more than the most capitalized cryptocurrency, Bitcoin. After the cryptocurrency’s ATH on November 10 at $4,867.36 per unit, Ethereum lost more than 74% and fell to the lowest annual mark of $1,202 per unit. The total market capitalization of the second largest cryptocurrency has decreased from $571.665 billion in November to $151.393 billion today.

Literally on the heels, the big drop in the Nasdaq is looming, which directly or indirectly forms about a quarter of its capitalization for account of its companies’ crypto holdings. According to Finance.Yahoo! There are at least some 15 major Nasdaq-listed companies having various degrees of involvement in Bitcoin (BTC) and other cryptocurrencies. They clarified their selection saying that “This list tracks publicly traded, non-cryptocurrency companies that have some level of exposure to crypto, either through investments, partnerships, or side ventures”. Yahoo Finance also promised to update this list as new companies enter the crypto space”.

Thus, Microstrategy (MSTR) has already issued an address to investors assuring the company’s sustainability at Bitcoin all the way down to $3,600. Square (SQ) is due to release its own statement soon. Many more digital finance companies listed in Nasdaq are underway. It is difficult to understand at this point though what big institutions are responsible for orchestrating the full blown stock market crisis.