The Crypto Market Crash: New News Today (May 12) and Updates: The world’s market for cryptocurrency appears to be in an unpredictably falling state.
Crypto Market Crash News News Today (May 12) and Updates: The world’s cryptocurrency market appears to have been able to enjoy a full decline, with the price of some of the most popular cryptocurrency tokens dropping down to record lows. There’s been a huge fluctuation in the rankings of the top cryptocurrency based on the market cap over the past 48 hours.
Information from CoinMarketCap confirms that Terra (LUNA) which was among the top cryptos only a couple of weeks ago has fallen to 59th position, losing more than 100 percent value over the past 7 days. Within the last 24 hours, the price of the cryptocurrency has gone down by more than 96 percent.
Bitcoin has lost nearly 28 % of its value in the last seven days. As of the time of writing the BTC value was $28,542. The value for TerraUSD (UST) which is thought to be the primary driving force behind the current crypto price crash has decreased by 32% over the past 7 days. Within the last day, UST price dropped by more than 18 percent, to $0.6782.
Here’s a brief overview of the major developments and updates coming from the cryptocurrency markets:
1. While BTC decreased by 9 percent during the last day, ETH dropped by 15 percent, and altcoins like LUNA decreased by over 90 percent. While a modest recovery was able to lift BTC to just above $32,000, the general market pressure to sell overhead and excessive fear of markets pushed the price to lower than $28,511.
2. “Data indicated that the rate of BTC exchange transactions remained high over the past few days. Investors typically transfer their assets to exchanges when they plan to sell their assets,” Darshan Bathija, CO chief executive officer, Vauld said to FE Online.
3. Luna was able to drop below $1 and the stablecoins of the blockchain UST lost their peg.
In addition, the value that Anchor holds Anchor, (Terra’s biggest Defi protocol) decreased by $11 billion over the last few days.
4. Terra’s stable cryptocurrency algorithm UST dropped to a value of $0.30 after losing its dollar peg.
5. Edul Patel CEO & Co-founder Murex. Murex The company’s CEO, Edul Patel, said: Bitcoin hit its lowest of 28,000 dollars in the past 24 hours, making it the weakest level since the year 2020.
“BTC is in oversold territory and is under increasing pressure to sell. In the past few days, BTC has been struggling to find support somewhere between US$27,000 to US$30,000. It is also possible that BTC could even fall below its current levels. Alongside macroeconomic variables, the fall of UST has had a major impact on the cryptocurrency market. It could take a while for cryptos to recover from the crash.”
5. Based on Bathija, the most stable coins such as Tether as well as USDC are secured by other assets, such as cash and bonds. In the instance of algorithmic stable coins such as UST, they are believed to be automatically correlated with the value of a different digital asset.
“One UST can be redeemed or created for exactly one dollar value of Luna. Luna Foundation Guard (LFG) founded by a non-profit foundation to aid in the development of and protect the Terra Ecosystem, bought various cryptocurrencies, including Bitcoin to keep the stable currency’s peg.” the official said.
6. In the last week as BTC dropped to $30,000, LFG’s reserve percentage to UST issued also fell which forced LFG to sell the BTC reserves.
“The result of this change is not just noticed in the market, but also has raised questions from regulators. U.S. Treasury Secretary Janet Yellen has cited this UST issue to advocate for a stable regulation of coins,” said Bathija.