Crypto Catch: Terra Luna crash triggers selloff in crypto market, investors spooked

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Crypto Catch: Terra Luna crash triggers selloff in crypto market, investors spooked

Crypto news, Terra Luna crash, bitcoin price, crypto market capitalisation
Image source: © Sasinparaksa | Megapixl.com

Highlights

  • It’s been a rough week for the crypto market with most tokens losing significant ground over the past seven days
  • The combined crypto market capitalisation of all is now reportedly $1.12 trillion – which is approximately a third of the peak value reached in November. 35 per cent of this loss has come in the past week

It’s been a rough week for the crypto market with most tokens losing significant ground over the past seven days.

The Terra Luna token fell from a high of US$118 in April to just six US cents, where it currently sits.

Terra Luna’s collapse had a knock-on effect on sister tokens, TerraUSD, which also lost huge ground, taking a massive loss of nearly seventy per cent.

The hits to these two stablecoins is particularly concerning considering the objective of a stablecoin is to hold its value against USD.

At this stage, it is not clear what caused the price of Terra Luna to crash, but many on social media are speculating that it might have something to do with collusion between US hedge funds, given some of the massive trades involved.

Moreover, spooked investors are now pulling out of major tokens, which has sent the wider market plummeting.

Bitcoin, the largest cryptocurrency by market capital, saw a nearly one per cent fall, to reach its lowest point since December 2020. The flagship currency is now valued at US$29,329.

The combined crypto market capitalisation of all is now reportedly US$1.12 trillion – which is approximately a third of its value in November. 35 per cent of that loss has come in the past week.

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Data Source: CoinMarketCap.com, based on top 100 cryptos.

Note: Growth from the 24 hours prior to 12:30pm AEDT

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