LAST UPDATE: 17.55
Bitcoin fell as low as $ 25,400 today after hitting a 16-month low as the cryptocurrency market as a whole expands its losses amid fears of inflation and the collapse of a controversial stablecoin project.
In particular, its price Bitcoin fell for the first time below the $ 27,000 level since December 30, 2020, although in the process it has shown some signs of recovery and has now reduced losses to -8% with the value of the largest cryptocurrency at $ 29,000.
Much stronger are pressures on the second largest cryptocurrency capitalization, the Ethereum which fell today to $ 1,704, with losses exceeding 25%. Now it also shows some recovery trends and is moving at -15% with its value at $ 1,999.
In general, the cryptocurrency market has seen more than $ 200 billion evaporate in the last few hours, amid the widespread new sell-off.
Cryptocurrencies widened their losses yesterday in the wake of yesterday’s data showing that inflation in the US exceeded analysts’ estimates. In particular, the consumer price index rose in April by 0.3% from the previous month and by 8.3% on an annual basis, as announced by the US Department of Labor. The monthly change, however, was the smallest since last August.
This frightened investors, leading them to exit risky assets, including cryptocurrencies. Cryptocurrencies continue to be highly correlated with the S&P 500 and, more recently, the Nasdaq.
“The cryptocurrency market has been under pressure for some time,” said Michael Rinko, an associate at AscendEx. “The Fed continues to raise interest rates, so stocks continue to fall and cryptocurrencies continue to fall. In general, this has created great market fear,” he added.
Analysts have cited $ 30,000 as the key level for the most popular cryptocurrency and have stressed that it could fall even further if it can not be maintained at this level.
Last week Bitcoin had “reached” $ 40,000, but quickly returned to losses the next day and has since hit steady new lows.
Meanwhile, investors are watching the course of the stablecoin TerraUSD of the Terra project, which continues to move in the “red”.
Specifically the TerraUSDthe so-called stablecoin, which aimed to stay firmly tied at $ 1, is now falling 10% and is moving at $ 0.44.
Terra’s other currency, the Iunahas vanished with – 99.84% at $ 0.007. It is worth noting that before the collapse of the last day began its price was moving above $ 80.
In the meantime Tetherthe world’s largest stablecoin, which also aims to stay firmly tied at $ 1, fell 98 cents, according to CoinGecko.
Stablecoins are something like the cryptocurrency world bank accounts, designed to serve as a stable repository of value to which investors can turn in times of market volatility. Tether and USDC, the two largest stablecoins, are backed by a sufficient amount of money kept in reserve to ensure that depositors can receive their dollars when they wish to withdraw.
UST is known as a stablecoin algorithm. Recently, its price has collapsed under selloff pressure on cryptocurrencies, leading to panic in the market.
Source: Capital
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
