How did the price of crypto assets perform in June?

Here’s what went on in the world of cryptocurrency last month…

| More on:
A bitcoin trader looks afraid and holds his hands to his mouth among graphics of red arrows pointing down

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Another painful month has come to pass for crypto asset investors.

The same could be said for more traditional investments during June. For instance, the S&P/ASX 200 Index (ASX: XJO) parted ways with roughly 600 points to finish the month 8.5% lower.

However, such a loss would almost look positive to those investing in crypto after such a challenging month.

Here’s a closer look at the explosive month (and not in a good way) for crypto prices in June.

What went down?

If I were to take the above heading literally, I could almost say, “nearly everything”. There’s no skirting around the truth here, June was yet another steep leg down for the digital asset market.

It is no overstatement to say that 99% of the top 100 crypto assets by market cap — excluding stablecoins — finished in the red by the end of the month.

The important question to ask is: why? What exactly is nudging so many investors to part ways with their investment and apply more selling pressure?

In all likelihood, the biggest contributor to sustained selling pressure in June was the lingering effects of inflation. In the United States, the consumer price index increased by 8.6% year on year in May, above expectations and the highest on record since 1981.

As Tom Dunleavy of states:

It’s hard to worry about putting money into the markets when you are concerned with putting food on the table or paying your mortgage.

Rising prices for goods and services, paired with the anticipation of rising interest rates, have only tempered enthusiasm for crypto during June.

In turn, crypto prices fell off a cliff in June as investors continued to go more risk-off under the current macroeconomic conditions. Specifically, falls across some of the biggest digital assets include:

Who is buying crypto at these prices?

The reality is, for every seller there is a buyer. So, while there are plenty of people unloading their positions, there’s an equal number of people on the opposite end of the transaction.

Possibly one of the most notable buyers, and self-proclaimed Bitcoin maximalists, is MicroStrategy CEO Michael Saylor. The famed original crypto-asset supporter took to Twitter on 29 June to let the public know MicroStrategy had purchased another 480 bitcoins for approximately US$10 million. This took the company’s Bitcoin holdings to 129,699 bitcoins.

The overall crypto market cap now resides at US$868.8 billion. This marks an unceremonious tumble below the trillion banner. Although, as my colleague Bernd recently covered, some experts — including eToro’s Simon Peters — consider the pullback to be within historic ranges.

Motley Fool contributor Mitchell Lawler has positions in Bitcoin and Ethereum. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin, Ethereum, and Solana. The Motley Fool Australia has positions in and has recommended Bitcoin, Ethereum, and Solana. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Cryptocurrencies

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price

Why this Bitcoin maximalist says all other ‘crypto is a scam’

Initially introduced in a 2008 whitepaper by one or more people going by the pseudonym of Satoshi Nakamoto, Bitcoin launched…

Read more »

A hand reaching into a computer to grab digital money, indicating a rise in the use of cryptocurrency

Why an RBA-issued crypto-like currency could soon be a reality

The RBA is piloting a central bank-baked digital currency.

Read more »

A male investor wearing a white shirt and blue suit jacket sits at his desk looking at his laptop with his hands to his chin.

Can the Bitcoin price reach US$30,000 again in 2022?

Rising interest rates have resulted in significantly less institutional investor interest in cryptos.

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.

Could this key metric signal more bad news for the Bitcoin price?

Crypto investors are keeping a close eye on the signals that could see the US Federal Reserve begin to ease…

Read more »

Man sitting at a desk facing his computer screen and holding a coin representing discussion by the RBA Governor about cryptocurrency and digital tokens

Is it smart to use dollar cost averaging to buy Bitcoin?

Should investors consider a DCA strategy for cryptocurrencies like Bitcoin?

Read more »

A hip young guy works at his home workstation with two screens and a gamers chair, keeping an eye on his crypto investments.
Share Market News

Bitcoin price dips in August after soaring 22% in July. What’s going on?

The greater presence of institutional investors in crypto markets looks to be adding to the correlation between cryptos and other…

Read more »

A very sad beagle cross dog lays dejectedly on a sofa with his short legs stretched out in front of him in a pose of flat defeat as he stares sadly at the camera.

Expert panel slashes 2022 outlook for Dogecoin price. Here’s why

Originally created as a joke, Dogecoin still has a market value of nearly US$9 billion despite crashing 91% from last…

Read more »

an image of a gold bitcoin and a gold ethereum coin side by side against a backdrop of a graph with reda and green bars representing rising and falling prices.

Bitcoin price dips. Is Ethereum on track to dethrone the top crypto?

Bitcoin is up 22% since 1 July while Ethereum has leapt 56% higher.

Read more »