A bloodbath in the cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. market; but none recorded bigger losses than LUNA, whose price has plunged more than 98%. The stablecoins were volatile.
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This Thursday, May 12, the cryptocurrency market is facing a steep decline that is sinking major cryptocurrencies and has even made some of the major ones volatile stablecoins .
Bitcoin lost its crucial resistance a certain price limit that the crypto in question will rarely, if ever, exceed. level and fell below USD $30,000. touching lows not seen since 2020. The major cryptocurrency is down just over 7% in the past 24 hours, trading around $28,500 by press time. The largest cryptocurrencies by market capitalization are also sliding in free fall, with even worse losses.
Ethereum a decentralized open-source blockchain with smart contracts functionality. the second-largest digital digital technologies are these electronic tools that have the ability to generate, store or even process data. asset, has plunged nearly 18% in the past 24 hours. The cryptocurrency, which was trading above USD $2,300 by Wednesday morning, fell as low as USD $1,750 early this morning. At the time of writing, ETH has recovered slightly, but still remains in bearish territory with a price near $1,900.
The rivals Solana ( SOL ) , Avalanche ( AVAX ) , Polkadot ( DOT ) y Cardano ( ADA ) often referred to as “killer Ethereum registered even steeper losses. SOL is trading at USD $43, down 23% in a day, and more than 50% in a week. Avalanche has been corrected by 18% and Polkadot has erased 25.1% of its value, while ADA is trading below 50 cents, with losses of 25.3% in the last 24 hours.
The picture in the rest of the market is not much different. In total, the global cryptocurrency market capitalization has slid by 12.4% on Thursday, currently standing at $1.19 trillion, well below its all-time high of nearly $3 trillion reached in November last year.
Tether disengaged amid UST and LUNA “death spiral”
The massive price plunge seen on Thursday came amid some unprecedented events. The main stable currency,Tether ( USDT ), lost its expected $1 level during the early morning hours, which led it to be momentarily valued at only 95 cents. This is the lowest level ever experienced by the popular stablecoin a cryptocurrency with extremely low volatility, sometimes used as a means of portfolio diversification. Examples include gold-backed cryptocurrency or fiat-pegged cryptocurrency. since a similar incident in 2017.
The reasons for the fall ofTether, y algunos usuarios de la comunidad de criptomonedas han especulado que podría tratarse de un ataque coordinado. Lo cierto es que la desvinculación se produjo en medio de una historia de colapso aún mayor: la de Earth .
No cryptocurrency project has suffered more than Earth which has seen its native cryptocurrency, LUNA, plummet by more than 95%. in less than 72 hours and its stable currency, UST, to lose its parity. It all started last weekend, when USD Land (UST) began to prove volatile. Since then, everything has been in a tailspin. On Wednesday UST hit a low of $0.3.
The instability of the stablecoin which is linked to LUNA, wreaked havoc with the ecosystem of Earth sinking LUNA to all-time lows. The native cryptocurrency of that project, which was trading above $80 a week ago, is now worth only USD $0.018. As a result, LUNA erased its high capitalization that placed it among the top cryptos on the market.
By the time of editing USDT still remains slightly below its stable price at USD $0.99. Meanwhile, its once strong decentralized decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal. competitor, UST seems to be recovering slightly and is trading at 60 cents.
Cryptocurrency market an area or arena, online or offline, in which commercial dealings are conducted. in the red
According to data from CryptoMarkets For the day, the cryptocurrency market is registering far more losers than winners, suggesting that most cryptocurrency investors may be racking up losses amid the latest collapse. In fact, even the big whales appear to be in the red.
According to data fromThe Block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain., MicroStrategy the enterprise software company with the largest institutional reserves in the world. Bitcoin The company has a paper loss of around USD$330 million on Thursday. The company owns 129,218 bitcoins, purchased at an average price of USD$30,700, suggesting that, with today’s drop, the investment is posting a loss.
Overall, the digital asset market has been highly volatile this 2022, amid a complex global economic landscape. The US Federal Reserve (Fed) has been raising interest rates to address a place where cryptocurrency can be sent to and from, in the form of a string of letters and numbers. the country’s high inflation a general increase in prices and fall in the purchasing value of money. (the highest in 40 years), a scenario compounded by the broader backdrop of Russia’s war in Ukraine.
Some analysts had already anticipated the approach of a “new” “new” era. winter “The cryptocurrency sector, or prolonged bearish period, a phenomenon that they now estimate could extend for some time before a recovery is seen.
- Terra announces new emergency measures to rescue LUNA and UST
- During Drastic Price Drop, Tether Announces Tron Chain Switch to Ethereum and Avalanche
- Bitcoin struggles to stay above USD $30,000 as U.S. inflation hits 8.3%
Article by Hannah Estefania Perez / DiarioBitcoin
Imagen de Unsplash
