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Crypto Market Continues Free Fall As Bitcoin, Ethereum Tanks

It’s a bloodbath in the cryptocurrency market. and both have suffered double-digit losses today, sending the rest of the market into the red.

The central theses

  • The cryptocurrency market has seen a sharp decline today.
  • BitcoinEthereum, and many other assets are trading deep in the red amid macroeconomic uncertainty and the ongoing Terra Crisis.
  • The global cryptomarket capitalization is now 60% below its peak.

The global crypto market cap has fallen to $1.2 trillion, down 60% from its peak.

The crypto market bleeding continues

When it rains, it pours – not least in crypto.

The digital asset market is suffering from continued sell-offs again today. Bitcoin is down 11.2% and is trading around $28,250. The top crypto asset posted a daily close below $30,000 on Wednesday, which has acted as a key psychological support level for more than a year as panic escalated across the market.

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While Bitcoin has taken a big hit, most lower-cap assets have fared much worse. Ethereumthe second biggest cryptocurrency, has fallen below $2,000 for the first time since July 2021 after suffering a 20.1% drop. It is currently changing hands for around $1,950.

The likes of , , and networks, sometimes described as Ethereum competitors, have all fallen harder. Solana will after one correction Traded up 29.5% at $46.05, now 83% below its all-time high from November. Avalanche is down 27.4% and polka dots has lost 25.1% of its value.

next to the Ethereum alternatives, DeFi was also used by so-called “blue chips” and MakerDAO hit hard, both of which suffered losses in excess of 30%. Ethereum’s top scaling solution is trading at $0.56 after a 35.4% hit, while the Metaverse hit is down to $0.71 after shedding 32% of its value.

While the market is in free fall, no crypto project has suffered more than Terra. The Layer 1Blockchain is in meltdown mode this week as their algorithmic stablecoin, loses its binding to , .

UST is currently worth just $0.46, while the network’s volatile token, , is trading at around $0.08. To maintain the dollar peg, UST can be exchanged for $1 worth of LUNA, but this week Terra went into a death spiral as stablecoin holders rushed to liquidate their positions, leading to a so-called bank run. LUNA surpassed $119 on April 5th. It’s down 99.9% this week.

Alongside the Terra Crisis, the crypto market is also likely to experience a sell-off due to its close correlation with traditional stocks. Companies like Netflix (NASDAQ:) and Facebook (NASDAQ:) have suffered unprecedented losses in recent weeks as fears that the big-tech bubble may have burst begin to escalate.

Additionally, macro uncertainty adds 50 basis points to the Federal Reserve in June 2022.

After today’s bloodbath, the global cryptocurrency market cap has fallen to $1.2 trillion. That’s down 60% from its peak of $3 trillion seven months ago. By all reports, the crypto space is deep in one bear marketand there is still no clear sign of brighter skies.

Source: Crypto News Deutsch

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