The latest news about the crash of the crypto market as of May Friday 13th: The cryptocurrency market seems to be in a free fall around the world.
The latest news about the crash of the crypto market as of May 13: The global cryptocurrency market seems to be in a free fall, with the prices of some of the most popular tokens falling to all-time lows. The list of the top cryptos by market cap has changed a lot in the last 48 hours.
CoinMarketCap data shows that Terra (LUNA), which was one of the most valuable cryptocurrencies just a few days ago, has dropped to 59th place, losing over 99 percent of its value in the last week. Already in the last 24 hours, its price has dropped by more than 96%.
In the last 7 days, the price of Bitcoin has dropped by more than 28%. At the time this was written, the price of BTC was only $28,542. The price of TerraUSD (UST), which is thought to be the cause of the current crash in the cryptocurrency market, has dropped by 32% in the last week. In the past 24 hours, the price of UST has fallen by more than 18%, to $0.6782.
Here are some of the most important news and changes from the crypto markets:
- In the last 24 hours, BTC fell by 9 percent, ETH fell by 15 percent, and altcoins like LUNA fell by more than 90 percent. Even though BTC’s price rose slightly above $32,000 after a small recovery, selling pressure from above and a lot of fear on the market drove the price down to below $28,511.
- “The data showed that the rate of BTC exchange inflow has stayed pretty high over the last few days.” “When investors want to sell, they often move their holdings to exchanges,” Darshan Bathija, CO founder and CEO of Vauld, told FE Online.
- Luna fell below $1, and the blockchain’s stablecoin, UST, once again lost its peg.
In the past few days, the total amount of money locked up in Terra’s biggest DeFi protocol, Anchor, fell by $11 billion.
- After it was no longer tied to the dollar, Terra’s algorithmic stablecoin UST fell to a low of about $0.30.
- Edul Patel, CEO and co-founder of Mudrex, says that in the last 24 hours, Bitcoin hit its lowest price of US$28,000, which is the lowest since 2020.
“BTC seems to be oversold, and selling pressure is getting stronger. BTC has been struggling to find support between $27,000 and $30,000 since yesterday. It’s also possible that BTC will fall below where it is now. Along with other big-picture economic factors, the collapse of UST has had a big effect on the cryptocurrency market. It could be a while before cryptocurrencies get back on their feet after this crash.”
- Bathija says that most stable coins like Tether and USDC are backed by assets like cash and bonds. Algorithmic stablecoins like UST are supposed to be automatically tied to the price of another digital asset.
“One UST can be exchanged for or made into exactly one Luna. “The non-profit Luna Foundation Guard (LFG), which was set up to help the Terra Ecosystem, bought Bitcoin and other cryptocurrencies to keep the stable coin’s peg,” he said.
- When BTC dropped to $30,000 earlier in the week, LFG’s reserves to UST issued ratio also dropped. This meant that LFG had to sell its BTC reserves.
“This move is having an effect on the market, and regulators are also worried about it. “Janet Yellen, who is the U.S. Treasury Secretary, used the UST issue to push for regulations on stablecoins,” said Bathija.