Do cryptocurrencies give up or what?

Ethereum, bitcoin, and all other major cryptocurrencies have all fallen sharply.

 So are the  cryptocurrencies give up or what?

With Ethereum trading after touching the price of $1,180, erasing all the gains made since January 2021, and with bitcoin trading touching one point at $23,500, a level not seen since December 2020 worse yet, bitcoin, Ethereum and other major cryptocurrencies have been on the decline since early April of this year.

It appears that a major lender in the field of decentralized finance, which is a degree, has gone bankrupt, and it is unclear how bad the situation in the balance sheet of Celsius is, but there are estimates that it owns from 1.3 to 1.5 billion dollars in crypto assets including hundreds of millions in Ethereum. Bitcoin

Since some Celsius assets are stored elsewhere, this threatens to destabilize the prices of some crypto assets such as stETH which should normally be close to follow the normal ETH price

As for other cryptocurrencies like Luna  and UST which ended up wiping out billions of dollars of value for the owners, the ramifications can still be felt in the market both from the fear faced by investors and players who have had to liquidate their crypto assets to survive. In bad shape none of this has much to do with bitcoin, but prices in cryptocurrencies often move in perfect harmony, so Ethereum suffers the same fate as bitcoin as for the external reasons that affect cryptocurrency prices, the macroeconomic environment is bad for risky assets

The Federal Reserve reduces its balance sheet and raises benchmark interest rates in order to combat hyperinflation, but this affects prices in the stock market as well as cryptocurrencies It also appears that cryptocurrency investors have abandoned the idea of ​​returning to the bull market, which in late 2021 led to the rise in the prices of Ethereum and bitcoin about 4800 dollars and 69,000 dollars, respectively.

Everyone seems to be preparing for a price drop or stagnation for a while until the macroeconomic situation fades away and all the major destabilizing entities in cryptocurrencies prove either solid or gone for good.

Fears of possible stagflation are driven by doubts about COVID-19 and the war in Ukraine, which has caused investors to turn to safe havens such as government bonds and securities.

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