Investor Warning: Crypto Market Value Falls Below $1 Trillion

Investors are sitting on their hands as they watch the value of the cryptocurrency market cap fall below $1 trillion. The past several months have been challenging for those who are engaged in cryptocurrencies.

All forms of digital currency have been seeing a downward trend since the beginning of this year. At other times, this contained lesser-known coins like Terra, while at other times, it included major, well-known names like Bitcoin.

In any case, it became clear by the afternoon of June 15th that the cryptocurrency market as a whole had sustained some potentially lethal body blows as the value of the entire sector fell below $1 trillion.

Even more concerning is the fact that a significant coin loan exchange, Celsius Network, has discontinued the practice of allowing customers to withdraw money from their accounts.

Investors have become fearful as a result of this, and long-time market participants have been reminded that emerging areas of the market are sometimes not safeguarded by banking regulations.

In a blog post, the company stated that it is “.taking this necessary action for the benefit of our entire community in order to stabilize liquidity and operations while we take steps to preserve and protect assets”

Is the FDIC Necessary for Crypto?

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The majority of customers in the United States have traditionally placed their faith in the nation’s banking system to insure and protect any assets that they entrust to a particular financial institution.

If you put money in a bank and the bank went bankrupt, you wouldn’t lose any money, if your account holds $100,000 or less, since your bank, along with the vast majority of banks in the United States, is guaranteed by the Federal Deposit Insurance Corp. (FDIC). This is just one example of how this works in America.

This is not always the case, because there are still a lot of places in the world where bank deposits are not insured or not insured to the equivalent of $100m.

The Financial Deposit Insurance Corporation (FDIC) was established in 1933 by American authorities under the Glass-Steagall Act. This was done after the beginning of the Great Depression caused many of the nation’s banks to fail outright, taking their customers’ funds with them.

Anyone who decided to put money into an American bank after the FDIC was founded had the peace of mind of knowing that if something were to happen to that bank, the cash that had been deposited there would be guaranteed by the federal government.

The Federal Deposit Insurance Corporation (FDIC) provides insurance against losses of up to $250,000, an assurance that contributes to the stability of the financial system and helps investors feel comfortable and peaceful.

After this avalanche of value in the crypto market do crypto owners need protection in the form of insurance? Lawmakers are considering this in their regulatory discussions.

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