June saw a new low for the cryptocurrency market in 2022. With a market valuation of $977 billion, the total value of cryptocurrencies fell below $1 trillion. The market capitalization of all cryptocurrencies worldwide has decreased by more than $2 trillion since it reached the $3 trillion thresholds in November last year. Nearly all popular coins are worth half as much as their previous highs. This can be seen from data from Coingecko.
A Surprising Crash
The sudden and dramatic fall in the value of cryptocurrencies caught everyone by surprise. For months, the prices of Bitcoin, Ethereum, and other major coins had been climbing to new all-time highs. And then, in a matter of days, they came crashing down. The crash caused billions of dollars in losses for investors and left the crypto world reeling.
It’s still not clear what really caused the crash. Some say it was due to a technical glitch, while others believe a major sell-off triggered it. Whatever the case, the crash was a harsh reminder of the risks involved in investing in cryptocurrencies. It also showed how quickly the market could turn against you.
Investor Protection By EU
Following the meltdown, the European Union took another step towards the regulatory monitoring and investor protections as significant market upheavals and disruptions in the realm of cryptocurrencies continue.
Thus, following lengthy discussions in Brussels on Thursday, the European Parliament’s Council reached a consensus on the hotly debated subject of legislating crypto-asset exchanges.
According to Euronews, the European parliament fine-tuned the final details of the regulation of the Markets in Crypto Assets, or MiCA.
The change occurred on a day when around 82,258 BTC trades valued at us$227.32 million were dissolved, causing the intensity of dread to drop from 13 to 11, signifying acute fear among investors.