Bitcoin dropped to $27,000 for the first time in 16 months – Photo: GETTY
According to Bitstamp data, Bitcoin price fell to as low as $26,595.52 on the morning of May 12, marking the first time Bitcoin has dropped below $27,000 since December 30, 2020.
The price of Ethereum, the second largest digital coin, has dropped to as low as $1,789. This is the first time Ethereum has fallen past $2,000 since July 2021.
According to CNBC, investors are fleeing cryptocurrencies amid the stock market plunge, due to concerns about inflation and a worsening economic outlook.
US inflation data released on May 11 showed that prices of goods and services rose 8.3% in April, higher than analysts expected and close to the highest increase in 40 years. .
In addition, investor sentiment was also affected by the collapse of TerraUSD.
TerraUSD (UST) is a stablecoin (stablecoin) similar to Tether, pegged to USD at a 1:1 exchange rate. However, the UST is being sold off and is currently trading for less than 30 cents.
Stablecoins are like the bank accounts of the crypto world. Cryptocurrency investors often look to them to “escape the storm” during volatile markets.
LUNA coin, a token of the Terra project, has been blown by 97% of its value in just 24 hours and is currently trading around 30 cents. Just a month ago, the LUNA coin peaked at $120.
Earlier, the Luna Foundation Guard (LFG) – the organization created by Terra to maintain the stability of the UST – announced that it would buy a reserve of about 10 billion USD in Bitcoin to strengthen the stability of the UST.
Investors fear that Mr. Do Kwon, the founder of LFG, will sell most of his Bitcoin holdings to balance the UST price.
Investor sentiment was also affected by the falling Tether coin. Tether (USDT) is the world’s most stable digital currency, usually pegged to the USD dollar, at 1:1.
At one point, USDT dropped below 99 cents. Economists have long been concerned that Tether’s treasury is insufficient to maintain value for the coin.
at Blogtuan.info – Source: tuoitre.vn – Read the original article here