Except for a few green sessions, the crypto market has been mostly in the red since December of last year. Cryptocurrencies continued to fall on Thursday and are far too low to recover anytime soon.

This week, cryptocurrency has been hit by two forces. Concerns that inflation will necessitate aggressive central-bank tightening have sapped the desire to hold higher-risk assets.

On the other hand, TerraUSD, also known as “UST,” fell below its 1:1 peg to the dollar this week, roiling cryptocurrency markets that were already under pressure due to falling stock markets. As a result, its native token, LUNA, has lost over 98% of its value in just two days. The token was trading at $0.08 at the time of writing, and it had only reached its 52-week high last month.

Furthermore, the so-called stablecoins debacle has sent shockwaves through broader markets, causing the largest cryptocurrency to fall below $30k in two days.

Bitcoin fell to $28,429, its lowest level since December 28, 2020. In the last eight sessions, it has lost a third of its value, or $13,000, and is down more than 45% this year.

It has lost nearly two-thirds of its value since reaching a high of $69,000 in November 2021.

According to CoinGecko, the major stablecoin Tether fell below its dollar peg, reaching as low as $0.98 around 0732 GMT on Thursday. USD Coin was trading around $1.03, while Binance USD was trading at $1.01, indicating a significant break from its usual range.

Ethereum (ETH), the second most valuable cryptocurrency by market capitalization, has also suffered significantly due to the spillover. At the time of writing, ETH was trading 19% lower at $1,935.

“The Terra incident is causing an industry-based panic, as Terra is the world’s third-biggest stable coin,” said Ipek Ozkardeskaya, a senior analyst at Swissquote Bank. But TerraUSD “couldn’t hold its promise to maintain a stable value in terms of U.S. dollars.”

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