Bitcoin just had its worst month in more than a year

As of Thursday afternoon, it had lost more than 32% of its value in June. The world's second biggest coin by market cap ended the period down by almost half.

Weakness in the digital assets sector is part of a broader flight from risk as major companies face solvency crises

In May, the popular U.S. dollar-pegged stable coin project UST and its sister token luna collapsed, costing $60 billion. In early June, lending firm Celsius paused withdrawals for customers due to extreme market conditions.

Three Arrows Capital failed to repay a loan worth more than $670 million. Sources told CNBC that FTX plans to buy BlockFi. The company's equity investors will be wiped out, according to one source.

Coinbase's stock fell about 40% in June, marking it's fourth straight negative month.

Matt Hougan, chief investment officer at Bitwise Asset Management, said in an interview that they are waiting to see if another entity will fail if the credit cascade continues. We need to get through the Fourth of July weekend and the quiet period in the market before we start building.

The price of doing business in the digital asset market can be very high. During the last ten years, there have been two periods of depressed prices. After losing more than 80% of its value in the last winter of 2018, bitcoin rebounded and peaked at $69,000 in November.

There was a note from Bank of America on Wednesday. According to analysts, data shows that U.S. consumers are more cautious about thecryptocurrencies. The bank's internal customer data shows a decline in the number of active users from its peak in November of 2016 to less than half a million in May of this year.

More than $2 trillion in value has been wiped out from the market in a matter of months, punishing retail traders who bet big on projects that were supposed to be safe.

The country's $21 trillion GDP or $43 trillion housing market are larger. U.S. households own a third of the global market. A survey shows that 16% of U.S. adults have invested in, traded, or used acryptocurrencies.

Many are buying at what they think will be record lows despite expectations of another revival. MicroStrategy has a total of $4 billion in holdings of the world's most popular digital coin.

If your time period is a week, a month, or a quarter, I think there's still significant volatility. This is a good time to think about entering the market if you have a time horizon that is measured in years.

In a week, the price of the digital currency fell. This is what happened.