Strategy and Bitwise, two of the largest Bitcoin (BTC) and Ethereum (ETH) holders in the world, are facing heavy losses after the recent market crash. According to reports, Strategy is facing $7.25 billion in unrealized losses. The company holds 843,706 BTC, with an average price of $75,699 per coin. Bitcoin (BTC) fell to the $65,000 price level earlier today.

Bitwise, on the other hand, holds 5,416,901 Ethereum (ETH), with an average cost of $3485 per ETH. The company faces an unrealized loss of $8.74 billion.

What’s Behind Bitcoin And Ethereum’s Price Crash?

Bitcoin (BTC), Ethereum (ETH), and the larger crypto market began its descent in May after higher than anticipated inflation figures. The high inflation numbers substantially reduced the chances of an interest rate cut. Many were hopeful that rates would go down after Kevin Warsh took charge of the Federal Reserve. However, high inflation may cause rates to remain elevated for a longer period.

Bitcoin (BTC) and Ethereum’s (ETH) latest crash came after peace talks between the US and Iran failed once again. Iran has restarted military operations against US bases in the region. The Strait Of Hormuz remains a topic of contention. Oil supply is expected to face challenges in the coming days. The development could put increased pressure on the economy, thereby, leading to higher inflation. Bitcoin (BTC), Ethereum (ETH), and other high-risk assets are not very attractive to investors at the moment.

How Low Will They Go?

The crypto market is subject to heavy speculation. Given the poor condition of the larger economy and uncertain geopolitical developments, Bitcoin (BTC) and other cryptocurrencies may experience a prolonged bearish period.

Also Read: US Senate adds Crypto Clarity Act to Legislative Calendar

There is a chance that the passing of the CLARITY Act will elevate investor sentiment. Increased inflows from high investor confidence could lead to some positive price action for Bitcoin (BTC) and Ethereum (ETH). However, nothing is certain. The market could take any turn at any moment.