• On June 15, the Federal Reserve raised its key interest rate by three-quarters of a percentage point, the largest increase since 1994, and central bankers signalled that they will continue to hike aggressively this year to combat inflation. 
• Despite this, Bitcoin fell below $20,000 for the first time since December 2020, as evidence of escalating stress in the crypto industry mounts against a backdrop of monetary tightening. Despite the ongoing DeFi crisis, digital assets remain under pressure. 
• According to Bloomberg data, the largest token by market value fell more than 9% to $18,740.52 by early morning in London on Saturday, marking a record-breaking 12th consecutive day in the red.
• Ether surpassed $1,000 before falling nearly 11% to $975.24, its lowest level since January 2021. Bitcoin has fallen for the past 12 days as investor anxiety grows. 
• A toxic combination of bad news cycles and higher interest rates has been detrimental to riskier assets such as cryptocurrency, contributing to a roughly 70% drop in Bitcoin from its all-time high in November. 
• Broader signs of stress emerged with the Terra blockchain’s failure last month, and have worsened this week as a result of crypto lender Celsius Network Ltd.’s recent decision to halt withdrawals. 
• To add to the gloom, crypto hedge fund Three Arrows Capital reported large losses and stated that it was considering asset sales or a bailout, while another lender, Babel Finance, followed Celsius’s lead on Friday.
• According to researcher Glassnode, even long-term holders who have avoided selling until now are feeling pressure. Altcoins were not immune to sour investor sentiment following Bitcoin’s decline, with every token on Bloomberg’s cryptocurrency monitor trading in the red. Cardano, Solana, Dogecoin, and Polkadot all fell between 7% and 10% in 24 hours on Saturday, while privacy tokens like Monero and Zcash fell as much as 9%. 
• The top four stablecoins saw exchange net outflows last week that were 4.5 times greater than the previous week, according to Bank of America’s Shah, after charting net outflows in eight of the previous ten weeks.

• Because stablecoins are frequently used by crypto traders to move funds around the ecosystem without having to exit into traditional currencies, persistent outflows suggest that investors remain cautious, he added. 
• Despite the breach of the critical $20,000 level, historical data suggests that Bitcoin may find key support around that level, as previous selloffs demonstrate where the token typically finds points of resilience, according to Bloomberg Intelligence analysts. 
• The crypto market is now a fraction of what it was in late 2021, when Bitcoin was trading near $69,000 and traders poured money into speculative investments of all kinds. According to CoinGecko pricing data, the total market cap of cryptocurrencies was around $880 billion on Saturday morning, down from $3 trillion in November.
• The reappearance of counterparty risk serves as a reminder that not everything in risk management can be precisely quantified. Risk is what remains after you’ve exhausted all possibilities.

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