A market-wide plunge saw more than $1.5 trillion wiped out across the entire crypto market after analysts braced for a “crypto winter,” or a period of cooling after a period. digital currency fervor. Bitcoin, the world’s best-known cryptocurrency, is on the brink of an excruciating drop, some analysts say, after its price fell to its lowest level since December 2020.
It has lost 12.5% of its value in the past 24 hours, dropping to $26,653, well below the $30,000 benchmark often used to reassure investors.
The second largest cryptocurrency in the world, Ethereum, lost twenty percent of its value in just 24 hours.
It has also lost more than half of its market value so far in 2022.
The cryptocurrency has also lost nearly two-thirds of its value since November 2021.
Terra, or Luna, the cryptocurrency, fell over 99%.
One of the ten most valuable cryptocurrencies in the world, it peaked at $120 in April, but fell below $1 on Wednesday.
Much of the damage was done overnight, as horrified investors watched its price plummet 98% in less than a day.
A Reddit user said he “lost all my savings” and didn’t know “what to do” after buying Luna for $85.
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The US-based stock exchange fell 15.6% overnight Tuesday after reporting losses of $430 million, beating even pessimistic forecasts.
In a warning embedded in the exchange’s quarterly earnings report earlier this week, it told clients they could be treated as “general unsecured creditors”.
He said, “Because crypto assets held in custody may be considered the property of a bankrupt estate, in the event of bankruptcy, crypto assets held by us in custody on behalf of our clients could be subject to bankruptcy proceedings and these customers could be treated as our general unsecured creditors.
Stating this warning is a requirement of the United States Securities and Exchange Commission, but Coinbase CEO Brian Armstrong separately reassured customers that this was not a likely event. .
He wrote on Twitter: “Your funds are safe at Coinbase, as they always have been.”
This follows a 2.5% drop in the FTSE 100 on Thursday morning, with more than £40bn wiped out.