Crypto Market Got $200b wiped out in a single day

May 12, 2022 - Around 3 mins mins to read

Bitcoin went beneath $26,000 for the very first time in 16 months, as part of a bigger cryptocurrency sell-off that wiped off more than $200 billion out of the whole market in a single day.

Crypto Market Got $200b wiped out in a single day

According to CoinMarketCap, cryptocurrencies have lost over $200 billion in value as a result of the collapse of the TerraUSD stablecoin. TerraUSD was tied to the dollar or even other conventional assets to reduce volatility, but its algorithm required traders to keep its value stable.

But don’t worry: the bitcoin market will not sink to zero, according to Fortune’s Sam Bankman-Fried. Despite the fact that his net worth has dropped by half since late March, the 30-year-old cryptocurrency millionaire is unconcerned. According to Bloomberg’s Billionaires Index, he is presently worth around $11.3 billion.

Ethereum, the second-most valuable digital currency, fell to as far as $1,704.05 per unit. This will be the first time the coin has dropped below $2,000 since June 2021. Ethereum was last trading at $1,988.45, down 6.5 percent.

The devastation appeared to be spreading further on Thursday, when crypto-related equities in Asia also plummeted. BC Technology Group, a Hong Kong-listed fintech business, closed down 6.7%. Monex Group of Japan, which controls the TradeStation and Coincheck platforms, finished the day losing 10%.

The Dow Jones Industrial Average fell 60 points, or 0.2 percent, after falling almost 350 points earlier in the day. The S&P 500 and Nasdaq composite index are up 0.7 and 1.2 percent, respectively. Bitcoin has gained 2% in the previous hour and is now worth roughly $29,383. In the same span, Ethereum, the second-biggest cryptocurrency by valuation, is up 2.1 percent, selling at $1,996.

The demise of the controversial stablecoin system Terra is also on traders’ thoughts. TerraUSD, or UST, is intended to reflect the value of the US dollar. However, it fell to less than 30 cents on Wednesday, causing investors to lose faith in the decentralized financial area.

84288E38 9DF2 4706 92FE 88B33B2DBCED — *Tether (USDT)*

According to CoinGecko, Tether, a prominent stablecoin, fell below its dollar peg, reaching as weak as 98 cents early Thursday. According to Reuters, USD Coin was selling at roughly US$1.04, whereas BUSD was trading around US$1.07 – a considerable departure from its regular range.

Although major banks strengthen monetary and fiscal policy to combat inflation, virtual currencies have been under pressure due to a general exodus from financial stocks. The S&P 500 futures fell 0.8 percent on Thursday, mirroring the 0.8 percent drop in the flagship MSCI Asia Pacific Index.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Jai Hamid

CoinCu News

Market

Crypto Market Got $200b wiped out in a single day

Bitcoin went beneath $26,000 for the very first time in 16 months, as part of a bigger cryptocurrency sell-off that wiped off more than $200 billion out of the whole market in a single day.