Bitcoin crash causes investors to "burn" 1 billion USD

(Dan Tri) - Bitcoin price suddenly plummeted, breaking through the threshold of 99,000 USD. This development marked a new recession of the world's largest cryptocurrency, causing many investors to "burn" their accounts.

Bitcoin has been falling sharply since the evening of June 22 (Vietnam time), losing the psychological mark of 100,000 USD/BTC. In the early morning of June 23, the world's largest digital currency even dropped to 98,300 USD, the lowest level since early May.

Although the bitcoin price has now recovered to $101,000, market sentiment is still filled with uncertainty. Investors are closely monitoring the next developments to make decisions.

Bitcoin's fall below $100,000 caused many other cryptocurrencies to plummet and cost more than $1.03 billion. The market also witnessed a series of liquidations of derivative trading positions. When Bitcoin broke through the $99,000 threshold, a series of long orders on exchanges such as Binance and Bybit were automatically liquidated.

According to experts, this sell-off is mainly due to a combination of geopolitical instability and concerns about the macroeconomic outlook, especially the risk that inflation in the US could flare up again .

Bitcoin price suddenly plummeted (Photo: Binance).

Iran is threatening to block the Strait of Hormuz, a vital shipping route that carries about 20% of the world's crude oil. The potential disruption to this energy supply has put oil prices at risk of skyrocketing.

JPMorgan warned that oil prices could exceed $130 a barrel in a worst-case scenario. Accordingly, oil prices could rise to $120-130 a barrel, raising the US inflation rate to 5% - the highest since March 2023.

This scenario raises concerns that the US Federal Reserve (Fed) will have to maintain high interest rates for a longer period of time, or even raise them again. This causes investors to withdraw capital from risky assets such as cryptocurrencies and seek safer investment channels.

Data from analytics firm Kaiko shows that in recent weeks, bitcoin has been showing an increasingly strong correlation with the Nasdaq stock index.

This development shows that bitcoin is being viewed by investors as a speculative asset, sensitive to interest rates and economic risks, similar to technology stocks, instead of a "safe haven" against inflation fluctuations as initially expected.

Source: https://dantri.com.vn/kinh-doanh/bitcoin-sap-manh-khien-nha-dau-tu-chay-1-ty-usd-20250623140930703.htm