Related: Is it Time to Buy the Dip?
Bitcoin is teetering on the precipice of an abyss, according to some crypto market analysts, with its price hitting its lowest level since July 2021.
The cryptocurrency has lost more than 50 per cent of its value over the last six months amid a market-wide downturn that has wiped more than $1.5 trillion from the overall crypto market.
Since first rising above this price at the start of 2021, BTC has never fallen below it for any significant amount of time, meaning it will be in unchartered territory if the sell-off continues.
There is widespread fear in the market on Thursday, after the Terra (LUNA) cryptocurrency fell by more than 99 per cent, dropping below $1 on Wednesday having peaked close to $120 last month.
The crash has pushed another stablecoin, Tether, below its dollar peg hitting as a low of 95 cents.
You can follow all the latest news, analysis and expert price predictions for bitcoin, as well as other leading cryptocurrencies like Ethereum (ETH), Solana (SOL) and Cardano (ADA), right here.
Tether, another stablecoin, dropped to a low of 95 cents by early Thursday morning.
“The lack of transparency provided by Tether on the quality of commercial paper they hold to back the peg made it the obvious next target,” BCB Group’s Usher told Reuters
“However, Tether is a very different animal to Terra, with a more proven ecosystem and I have far more confidence that when volatility subsides it can regain its peg and stability,”
Adam Smith12 May 2022 15:38
Eight days prior to the crash, Do Kwon said: “95% [of coins] are going to die, but there’s also entertainment in watching [them] die too.”
Adam Smith12 May 2022 15:15
Luna founder called people poor before his coin dropped 99.99 per cent
Do Kwon, the founder of the Luna cryptocurrency, has a history of mocking people for not investing in his coin.
Luna has recently dropped nearly the entirity of its value, dropping below $1 on Wednesday having peaked close to $120 last month
Adam Smith12 May 2022 14:47
“Five years ago, people who were in crypto were crypto people,” said Mike Boroughs, a founder of the blockchain investment fund Fortis Digital. “Now you’ve got guys who are across the whole span of risk assets. So when they’re getting hit over there, it’s impacting their psychology.”
Adam Smith12 May 2022 14:30
Bitcoin is just like any other tech investment
In the wake of cryptocurrencies’ falling price, traders are increasingly treating them like just another speculative tech investment, the New York Times reports.
“It delegitimizes the argument that Bitcoin is like gold,” said Vetle Lunde, an analyst for Arcane. “Evidence points in favor of Bitcoin just being a risk asset.”
Adam Smith12 May 2022 13:50
Cryptocurrency exchange Binance has warned that its network is “experiencing slowness and congestion, which is intermittently causing a high volume of pending Terra network withdrawal transactions”.
It continued: “ We are continuously monitoring the network status and working to provide Binance users with the best possible experience. Please note there may be periods where $LUNA network withdrawals are temporarily suspended due to the network congestion”.
Adam Smith12 May 2022 13:30
How bad is Bitcoin mining for the environment really?
In little over a decade, Bitcoin has risen from a fringe technology popular with cryptographers, to the world’s ninth most valuable asset by market cap.
The cryptocurrency’s dramatic ascent has created millionaires, reimagined money and launched a multi-billion dollar industry inspired by its revolutionary decentralised technology.
But it has also brought with it some unwanted side effects, writes Anthony Cuthbertson.
Jon Sharman12 May 2022 13:16
Ethereum leads the collapse
Here’s our latest wrap on what is happening in cryptocurrencies. In short: a lot of bad.
Those same negative fortunes are being seen across tech stocks, too. As such, cryptocurrency seems to be suffering both from new poor sentiment about digital coins in general, but also a worrying economic picture.
Andrew Griffin12 May 2022 13:13
“Cryptocurrency has always seemed to me like one of those financial manias that sometimes grip the world – like Wall Street in the 1920s, or the dot com boom that collapsed in 2000”, writes Independent columnist Sean O’Grady.
“If cryptocurrencies collapse and fail, this is because the collective of people who use them and create them have failed to find a way of making them stable and reliable, ie useful, besides being a vehicle for speculation. Then again, usefulness probably isn’t the point of cryptocurrencies. Their point is that they have no point. I hope that helps”.
Jon Sharman12 May 2022 12:57
Coinbase warns customers they could lose their crypto if the company goes bankrupt
“Because custodially held crypto assets may be considered to be the property of a bankruptcy estate, in the event of a bankruptcy, the crypto assets we hold in custody on behalf of our customers could be subject to bankruptcy proceedings and such customers could be treated as our general unsecured creditors”, the warning states.
This is a statement Coinbase needed to make because of a requirement made by the US Securities and Exchange Commission, which said these disclosures are necessary so customers are informed about their investments.
Founder and chief executive of Coinbase Brian Armstrong took to Twitter to reassure customers that the company was not at risk of bankruptcy.
“Your funds are safe at Coinbase, just as they’ve always been”, he wrote.
Jon Sharman12 May 2022 12:38
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