ፎቶ Reuters photo file Bitecon encryption is shown in this example taken on August 6, 2021. REUTERS / Dado Ruvic
By Alun John and Elizabeth Hawcroft
Hong Kong (Reuters) – Crypto currencies extended their sales on Thursday, falling sharply in 16 months, sending shockwaves through the so-called stable currency.
Bitcoin and its smaller rival Ether, which has more than half the market value this year, came to terms with TerraUSD this week, one of the largest cryptocurrencies in the world.
Bitcoin has fallen to a low of $ 25,401.05 since December 28, 2020. It has lost one-third of its value in the last eight sessions, or $ 13,000, and has fallen more than 45% so far this year.
A.D. It lost two-thirds of its $ 69,000 peak in November 2021.
TerraUSD, also known as UST, slipped below the 1’s 1 pin this week and fell on the dollar, declining crypto markets and declining stock markets.
“The collapse of Peg in TerraUSD has some ugly and predictable discrepancies. The bank will operate in the 2008 financial crisis.
Stablecoins are digital tokens that are priced at traditional assets such as the US dollar. They are well-known in the cryptocurrency market and are often used by merchants to move funds and forecast other currencies.
On Thursday, TerraUSD quoted CoinGecko as priced at around 50 cents.
Unlike most standalone coins, TerraUSD is an algorithm or “decentralized” stable coin. He had to keep the nail in place with a complex mechanism, including changing it to another free floating simulator.
But the stockholders, who say they have enough resources to take care of their nails, were showing signs of distress on Thursday.
Major stable coin slipped below the dollar peg, hitting 98 cents around 0732 GMT on Thursday, CoinGecko said. It traded around $ 1.04 Binance USD was $ 1.07 – a significant difference from the normal range.
“The event is causing an industrial shock because Terra is the third largest stable currency in the world,” said Epic Ozcardeskaya, senior analyst at Swiss Quote Bank. But TerraUSD “failed to deliver on its promise to maintain a stable value against the US dollar.”
Market players are still assessing TerraUSD’s failure to identify major companies or investors. This may be a hint of a widespread infectious disease.
Ether, the world’s second-largest cryptocurrency, fell 15% to $ 1,700 on Thursday, the lowest since June 2021.
Unlike previous sales bills in large financial markets, cryptocurrencies are relatively unaffected, at which point the selling pressure on these assets is dispelled by the widespread argument that they are safe stocks in market volatility.