Bitcoin dropped to its lowest level in 16 months on Thursday, driving a rush on risk assets such as tech stocks, While the collapse of TerraUSD, a supposedly stablecoin, has stressed the pressure on cryptocurrency markets.
The world’s largest cryptocurrency dropped to $26,970, the lowest it has been since December 28, 2020. In the last eight sessions, it has lost a third of its value, or $13,000, Reuters reported.
Bitcoin jumped in 2021 to achieve its record of $69,000 than November.
Traders say its recent decline reflects declines in technology equities, as Nasdaq lost 6.4% this week.
Another factor at stake is the dramatic collapse of TerraUSD, formerly the third-largest stablecoin in the world, who broke his dollar ankle this week to fall as low as 30 American cents, provoking ructions in the crypto industry.
Market participants are still assessing the consequences of its collapse to determine if large companies or investors have been severely impacted, such as a possible indication of a broader contagion.
Ether, the world’s second-largest cryptocurrency, dropped more than 10 per cent on Thursday to $1,833, its lowest level since July 2021.