The Bitcoin sign is seen at a Coinstar ATM during the Bitcoin 2022 conference at the Miami Beach Convention Center on April 8, 2022 in Miami, Florida. Photo: Marco Bello (Getty Images)
The cryptocurrency market continued to bleed money on Thursday, with the most popular coins falling by double-digit percentages in the last 24 hours. And absolutely no one knows when things will bottom out, with many worried that the entire counterfeit digital money market could fall to zero, as Tether’s stablecoin is officially trading below $ 1 for the first time on early Thursday.
Bitcoin, the world’s most popular cryptocurrency, fell 11.2 percent in the last day to $ 27,959, about 58 percent lower than its all-time high of $ 69,000. in mid-November. Ethereum has struggled even worse in the last 24 hours, falling 19.9% to $ 1,930.
The culprit for the crypto-bloodbath was a chain reaction that began over the weekend, when Terra’s stablecoil, TerraUSD, which is theoretically expected to stay at $ 1, “dispensed” and began trading below $ 1. This came as a shock to the crypto community, as it is assumed that stablecoins are backed by real assets and are not just monopoly money. At least that was the promise, although investigative reporters found that it was all a game of smoke and mirrors.
Tether, the world’s most popular stable coin, also fell for the first time on Thursday, falling to $ 0.95 on major exchanges, before recovering slightly to $ 0.98 at the time of writing. But even at $ 0.98, the usefulness of Stablecoin is completely obliterated, as it doesn’t cost exactly $ 1, which makes speculators rush in and try to make money by buying Tethers at a lower price, assuming they can be sold for $ 1 later. And just such instability that you already have with cryptocurrencies does not help people looking for a safe haven asset that can be more easily used to convert to fiat.
Terra’s Luna, the world’s fourth most popular cryptocurrency since early Monday, fell another 98 percent in the last 24 hours. It is currently trading at only $ 0.04, the cryptocurrency was above $ 87 just a week ago and $ 54 early Monday. Anecdotes about people who lost their lifelong savings in the crash of the moon appeared on social media sites like Reddit, although Gizmodo still couldn’t independently verify any of these stories.
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Other leading cryptocurrencies also fell, with BNB down 18% in the last 24 hours to $ 254.45, XRP (Ripple) down 28% to $ 0.36, Cardano down 32% to $ 0.44 and Solana down from 33% to $ 43.14. Dogecoin, the currency for a joke meme, turned into a major investment, fell 29% on the last day to $ 0.07.
As we explained on Monday, if you invested $ 100 in one of the most popular cryptocurrencies six months ago, you lose a significant amount of money. And if you listened to Matt Damon during his Super Bowl ad for Crypto.com, insisting that “the state favors the brave,” you’re probably kicking.
As crypto expert Ben Mackenzie points out on Twitter, there are a few things to watch out for when the crypto market crashes. First and foremost, look for exchanges to stop suddenly allowing people to withdraw money in the name of “scheduled maintenance,” something Binance US has already announced tonight that it will happen this morning at 6:00 a.m. ET until 9:30 a.m. ET.
“While these jokes are fun (and lucrative for the big boys), when the price goes up, when it goes down, all the hell tends to lose. You, my dear average casino patron, are not at the forefront of their minds, ”Mackenzie tweeted.
But this is only the opinion of an expert. How low can cryptocurrency fall? Again, no one can say for sure. But if you want to get some cheap cryptocurrency, it’s probably a good idea to at least wait to see what happens to Tether in the coming days and weeks. Experts such as McKenzie have warned that the collapse of Tether could completely reduce the value of bitcoin to nothing. And now we can see if this theory will work.
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