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Tuesday, October 4, 2022

Cryptocurrencies continue to fall as losses hit $1 trillion

EconomyCryptocurrencies continue to fall as losses hit $1 trillion

World (The Times Groupe)- In a high inflationary environment, the decline that began in November last year in the crypto money market has continued. Ethereum luna

The price of Bitcoin and Ethereum fell for a seventh consecutive week in a market where reliability has been questioned after recent events in LUNA.

With the increase in inflation and high interest rates since November, the cryptocurrency market, which has seen hard ups and downs since it emerged because of its structure, has been hit hard.

It was the collapse of trust that accelerated the collapse after what happened with the stable coin, LUNA, which was issued to stabilize the price of the Terra platform cryptocurrency, UST, designed to be equal to $1.

LUNA, which was one of the top 10 cryptocurrency exchanges and had many investors, dropped to zero and was delisted from Binance, which caused instability in the general market.

In the wake of the developments, the cryptocurrency market value, which exceeded $2.1 trillion at the beginning of April, fell to $1.2 trillion, according to Coinmarketcap data.

Bitcoin has the highest market capitalization at $558.6 billion, followed by Ethereum with $237.6 billion.

Bitcoin, which hit its peak of $69,000 in November, fell to $24,500 earlier this month amid market instability, seeing its lowest level in one-and-a-half years.

Bitcoin recovered some losses at the end of March and was above $48,000, but is now around $29,000.

In November, Ethereum peaked at $4,870, when it entered a downward trend.

The price dropped to $1,960, closing with a loss for the seventh week in a row.

LUNA, which is an important part of the cryptocurrency market, still has unpredictable effects on the entire industry, according to experts.

By emphasizing that the uncertainty of crypto assets increases volatility in the market, a clear regulatory mechanism is needed to eliminate instability.

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