Crypto Crash: Bitcoin, Ethereum, Dogecoin, Polkadot Plunge After TerraUSD Stablecoin Crash

IIt has been a brutal few days for the global cryptocurrency market, as the price of major players such as Bitcoin and Ethereum crashed following the collapse of the stablecoin TerraUSD.

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A global selloff wiped out more than $200 billion in crypto wealth in just 24 hours, Bloomberg reported, citing data from CoinMarketCap. Bitcoin sank as much as 10% in the past day to hit its lowest point since December 2020. Ethereum lost up to 16%.

The rout was caused by a massive drop in stablecoins. TerraUSD, better known as UST, fell to 30 cents on the morning of May 11, rebounded to over 80 cents later overnight, and fell back to around 60 cents on the morning of May 12, according to CoinMarketCap. UST’s sister coin Luna lost more than 90% of its value last week, The Washington Post reported. The global crypto market has lost more than a quarter of its value over the same period.

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Pivotal crypto Bitcoin fell below $30,000 on May 11, putting it more than 50% below its all-time high set in November 2021. It is currently trading near its 2021 low, which means that most investors who bought Bitcoin during its rise to popularity last year are, at least for now, holding losses.

Ethereum’s price also fell more than 50% from its all-time high six months ago, while Dogecoin and Polkadot were among the cryptos that lost more than a third of their value in the past. past 24 hours, according to Economic Times.

Meanwhile, general interest in crypto trading appears to be waning. On May 10, crypto-trading platform Coinbase announced a loss of $430 million in the first quarter, as the number of monthly active users for the period fell to 9.2 million from 11.4 million in the previous quarter. .

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The plunge also spread to other markets, particularly in Asia, where Hong Kong-listed fintech BC Technology Group Ltd. closed down 6.7% on May 11 and Japanese group Monex lost 10% for the day.

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This article originally appeared on Crypto Crash: Bitcoin, Ethereum, Dogecoin, Polkadot Plunge After TerraUSD Stablecoin Collapse

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