It’s been a wild week in crypto, even by crypto standards.
Bitcoin tumbled, stablecoins were anything but stable and one of the crypto industry's highest-profile companies lost a third of its market value.The price of bitcoin dropped to around $25,420 this week, its lowest level since December 2020, according to CoinDesk. It steadied around $30,000 Friday, but that's still less than half the price bitcoin fetched last November.
But this week one of the more widely used stablecoins, Terra, experienced the cryptocurrency equivalent of a run on the bank. Terra’s problems started from a combination of withdrawals of hundreds of millions, perhaps billions, of dollars from Anchor, a platform that supported the stablecoin. Combined with worries overall about cryptocurrencies, and the drop in bitcoin’s price, Terra started to lose its peg to the dollar. The bitcoin that Terra held was also worth less than they paid for it, and selling those bitcoin into the market caused bitcoin prices to fall even further.
In a letter to shareholders, Coinbase said it believed that current market conditions were not permanent and it remained focused on the long-term while prioritizing product development. While most Wall Street analysts expect Coinbase to weather the storm, they're also warning that increased regulation of cryptocurrencies could hamper the company's growth.There has been a lot of talk about regulating cryptocurrencies, but little in the way of action.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bitcoin, Ethereum Technical Analysis: BTC Slips to Its Lowest Point Since December 2020 – Market Updates Bitcoin NewsBitcoin fell below $30,000 for the second time this week. However, today’s plunge saw prices fall to their lowest level since December 2020.
Read more »
Stablecoin Shuffle — Terra Fiasco Shakes up Fiat-Pegged Crypto Economy, Over $35 Billion Disappears – Bitcoin NewsJust as it caused carnage in the crypto economy, Terra’s recent downfall has caused a great shift within the stablecoin ecosystem.
Read more »
Bitcoin set for record losing streak as 'stablecoin' collapse crushes cryptoCryptocurrencies nursed large losses on Friday, with bitcoin trading near $30,000 and set for a record losing streak as the collapse of TerraUSD, a so-called stablecoin, rippled through markets.
Read more »
Kava Network’s USDX tumbles to $0.65 as yet another stablecoin depegsKava Network’s USDX tumbles to $0.65 as yet another stablecoin depegs By vishal4c
Read more »
Trust in stablecoins 'infinitely more important' than collateralCrypto service provider VegaX's co-founder Sang Lee believes that trust is more important than the collateral a stablecoin has because as more people use it, trust and utility increase.
Read more »