Thursday was the first time in over a year that the price of the digital currency fell below $27,000.
Bitstamp data shows that the price of the virtual currency plunged as low as $26,595.52 Thursday morning. It is the first time since Dec. 30, 2020 that it has sunk below the $27,000 level.
At 1:30 a.m. In the last 24 hours, it was down 15%.
The second-biggest digital currency dropped to as low as $1,789 per coin. It was the first time the token had fallen below $2,000.
The price of ether was $1,852.
At a time when stock markets have plunged from the highs of the coronaviruses, investors are fleeing from cryptocurrencies.
The April inflation data showed prices for goods and services jumping 8.3%, the highest level in 40 years, and 888-270-6611 888-270-6611 888-270-6611 888-270-6611 888-270-6611 888-270-6611 888-270-6611 888-270-6611 888-270-6611 888-270-6611 888-270-6611 888-270-6611 888-270-6611 888-270-6611 888-270-6611 888-270-6611 888-270-6611 888-270-6611 888-270-6611 888-270-6611 888-270-6611 888-270-6611 888-270-6611 888-270-6611 888-270-6611 888-270-6611 888-270-6611 888-270-6611 888-270-6611 888-270-6611 888-270-6611 888-270-6611 888-270-6611 888-270-6611 888-270-6611 888-270-6611
The downfall of stable coin protocol Terra is weighing on traders.
TerraUSD plummeted to less than 30 cents on Wednesday, shaking investors' confidence in the so-called decentralization finance space.
Stable coins are like bank accounts. Digital currency investors look to them for safety in times of market turmoil.
UST, which is underpinned by code rather than cash held in a reserve, has struggled to maintain a stable value as holders have bolted for the exit.
UST was trading at about 62 cents as of Thursday morning, still below its intended $1 peg.
Luna, a Terra token that has a floating price and is meant to absorb UST price shocks, was wiped out of its value in 24 hours and was last worth just 30 cents.
There are investors who are scared about the implications. The Luna Foundation Guard was set up by Terra creator Do Kwon to help support UST in times of crisis.
The fear is that Luna Foundation Guard will sell a lot of its holdings in order to save its stable coin. That is a risky gamble because of the volatile nature of the asset.
Adding to investors fears was a drop in the value of tether, the world's biggest stable coin. The token was below 99 cents at one point. tether may not have the required amount of reserves to bolster its dollar peg in the event of mass withdrawals.
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