A massive sell-off wiped more than $200 billion from the crypto market in a day, according to a price-tracking website called CoinMarketCap. The collapse of TerraUSD, a stablecoin, fueled a broad plunge in the crypto complex, and it hit major tokens like Bitcoin and Ethereum hard. Bitcoin, for instance, dropped 10% during the day to its lowest level since Dec. 2020. Ethereum fell 16%.
The massive sell-off of cryptocurrencies has wiped out more than $200 billion from the crypto market in the past 24 hours. Cryptocurrencies such as Bitcoin and Ether have suffered significant price drops over the last few months. Inflation worries, war in Ukraine, and the decline of the major stock markets are all likely culprits. Meanwhile, the collapse of stablecoin terraUSD – the world’s largest – has caused a shockwave through the crypto market. It has pushed a stablecoin called Tether below its peg to the dollar and sent Bitcoin and Ethereum to their 16-month lows.
Cryptocurrency prices have fallen across the board on Tuesday, erasing more than $200 billion in value from the entire crypto market in a single day. Meanwhile, the sister cryptocurrency of controversial stablecoin TerraUSD, LUNA, has lost more than 95% of its value in a day. In the process, it has also dragged down the controversial stablecoin TerraUSD.
Bitcoin’s price fell in recent days, and Ethereum’s market was virtually erased in a single day, but that’s not the only reason. Other currencies like DAI, Litecoin, and Dash also claim to provide increased anonymity and decentralization. The Ethereum network is not yet in a bubble. It is largely still unregulated, so price fluctuations can be unpredictable.
The biggest exchange in the U.S., Coinbase, had an outage over several hours earlier this week, which affected trading in Ether. The outage was the worst since Coinbase made its historic debut on the Nasdaq last year. After all, the stock has dipped 25% in the last week. Earlier today, it hit a new record low. This sell-off erased almost $200 billion of the market.
A massive cryptocurrency sell-off has erased more than $200 billion from the entire market in less than 24 hours. The plunge is blamed on the collapse of the TerraUSD stabilitycoin, which hit major tokens hard. Bitcoin and Ethereum, the two most popular cryptocurrencies, both plunged more than 10 percent in the last day. Crypto-related stocks have cratered in Asia, with BC Technology Group Ltd. down 6.7 percent and Monex Group Inc. down 10 percent.
The cryptocurrency market is in a lurch and a broader bear market is likely to follow. Ethereum, the second largest cryptocurrency, has shed more than half its market value this year, and fell 16 per cent Thursday. As a whole, the total market cap of all cryptocurrencies is currently at just under US$1.12 trillion, a third of its value from last November. The collapse of the stablecoin terraUSD, known as UST, was also a contributing factor in the sell-off, with the coin falling below its $1.70 peg with the dollar.
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