Technology

Cryptocurrency market lost $200 billion in a single day

An art installation about Bitcoin at the 2022 Digital Currency Conference at the Miami Beach Convention Center.

Photo: CHANDAN KHANNA/AFP/Getty Images

NEW YORK – The market for cryptocurrencies lost more than $200 billion in a single dayparallel to the falls suffered by the main Wall Street indices, where sales have prevailed in recent days, reported the specialized media CNBC.

Among the major currencies, Bitcoin fell below $26,000 for the first time in 16 months, after losing close to 20% in five days.

Ether, the second of the cryptocurrencies, was trading today at $1,719 dollars per unit, which represents a fall below $2,000 dollars, a figure from which it had not fallen since July 2021.

Investors are withdrawing their investments in these securities that have been affected by inflation, the aggressive policy of raising interest rates by the US Federal Reserve and the downward revision of economic projections.

Yesterday, the stable cryptocurrency TerraUSDwhose value was in theory linked to the dollar, plummeted to a low of 23 cents, while its creator announced that he would seek to “rebuild” the product by modifying the complex mechanism on which it is based and seeking more capital.

Amid widespread declines in the cryptocurrency market, TerraUSD broke its parity with the dollar this week and its price has progressively sunk, as has happened with Luna, another cryptocurrency linked to it, which has also lost much of its value.

Analysts quoted by CNBC point out that the collapse of TerraUSD has increased fears of further bearish contagion in the market.

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