More than 200 billion left the cryptocurrency market in one
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More than $200 billion left the cryptocurrency market in one day amid mass panic

According to the CNBC portal, the cost of bitcoin fell below $26,000 for the first time in 16 months yesterday and continued to fall. Against this panicked backdrop, a massive sell-off in crypto assets led to the withdrawal of more than $200 billion in just one day.

    Image source: geralt/pixabay.com

Image source: geralt/pixabay.com

Bitcoin’s price fell to $25,401.29 on Thursday, according to Coin Metrics — the first time the cryptocurrency price for a coin has fallen below $27,000 since December 26, 2020.

    Image source: CoinDesk

Image source: CoinDesk

It is known that the second most popular cryptocurrency Ether fell in price to $1704.05, for the first time since June 2021 its price fell below $2000, now the rate is gradually recovering.

Investors en masse try to get rid of crypto assets in case of a panic in the stock market caused, for example, by rising prices or troubles in the economy. According to the latest data, inflation in the US rose to 8.3% in April, significantly higher than experts had expected. The inflation rate has reached its highest level in the last 40 years.

The decline in the price of the stablecoin TerraUSD (UST) also played a significant role. The price should always be around $1, but it was worth less than 30 cents on Wednesday, undermining investor confidence in decentralized assets in general. Investors resort to converting assets into stablecoins in turbulent times, but recent events with “algorithmic” UST not backed by real assets have shown that owners are in a hurry to get rid of such a currency in the event of a crisis . Now, the UST stablecoin costs just $0.07, according to CoinDesk.

    Image source: CoinDesk

Image source: CoinDesk

Stablecoins, which have real financial backing, also suffered. Major Tether (USDT) fell to 95 cents on Thursday as investors feared there would not be enough reserves to support the price in the event of a bulk sell, but now its value is almost the same, according to CoinDesk.

About the author

Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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