Crypto Crash Latest Updates
Crypto Market Crash Today’s (May 12) News and Updates: The global cryptocurrency market seems to be in rapid collapse, with values of numerous leading coins hitting new lows. In the past 48 hours, there has been a tremendous churn in the list of top cryptos by market valuation.
Terra (LUNA), which was one of the top cryptos only a few days ago, has plunged to 59th place on CoinMarketCap, losing more than 99 percent of its value in the previous seven days. Its price has dropped by more than 96 percent in just 24 hours.
In the previous seven days, Bitcoin has lost more than 28% of its value. At the time of publication, the price of BTC was only $28,542. Meanwhile, the price of TerraUSD (UST), which is seen to be the main driver of the current crypto market crisis, has fallen by 32% in the previous seven days. The price of UST has decreased by more than 18% in the previous 24 hours to $0.6782.
Here are some major news and updates from the crypto markets:
1. While BTC declined by 9% in the previous 24 hours, ETH fell by 15%, while altcoins like LUNA sank by more than 90%. Despite a modest rebound that pushed BTC slightly over $32,000, the market’s widespread overhead selling pressure and significant panic drove the price down to depths around $28,511.
2. “Data revealed that the pace of BTC exchange inflow remained reasonably high over the previous several days.” “When investors decide to sell, they often move their assets to exchanges,” Darshan Bathija, CO founder & CEO of Vauld, told FE Online.
3. Luna fell below $1, while the blockchain’s stablecoin UST lost its peg once again.
Furthermore, the total value locked on Anchor (Terra’s largest DeFi protocol) has dropped by $11 billion in the last few days.
4. Terra’s algorithmic stablecoin UST fell to about $0.30 after losing its dollar peg.
5. Mudrex CEO & Co-Founder Edul Patel says: Bitcoin has dropped to a low of $28,000 in the last 24 hours, the lowest level since 2020.
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“BTC seems to be oversold, with selling pressure mounting.” BTC has been battling to find support between US$27,000 and US$30,000 since yesterday. It is also possible that BTC will go below its present level. Along with macroeconomic issues, the fall of UST has had a significant influence on the cryptocurrency market. Cryptocurrencies may take some time to recover from this slump.”
5. Most stable currencies, such as Tether and USDC, are backed by assets such as cash and bonds, according to Bathija; algorithmic stablecoins, such as UST, are designed to be automatically tied to the price of another digital asset.
“One UST may be exchanged or minted for one Luna.” “The Luna Foundation Guard (LFG), a non-profit foundation established to promote the Terra Ecosystem, purchased numerous cryptocurrencies, including Bitcoin, in order to keep the stable currency pegged,” he said.
6. When BTC plummeted to $30,000 earlier this week, LFG’s reserves ratio to UST issued fell as well, requiring LFG to sell its BTC reserves.
“Not only is the impact of this shift being felt in the market, but regulators are also concerned.” “US Treasury Secretary Janet Yellen used the UST problem to advocate for stablecoin regulation,” Bathija stated.