The Cryptocurrency market cap crashed further on Wednesday as Bitcoin and several other top crypto prices hit new lows.
The global crypto market cap is now just $1.38 trillion, a 6.44% decrease in the last 24 hours. The Bitcoin price has again fallen below $31,000 level. At the time of this report, Bitcoin price was $30,621, which is nearly 5% decrease in the last 24 hours.
Meanwhile, the price of Terra (Luna) has crashed massively to $6.42. In the last 24 hours LUNA price has fallen by over 99%. The LUNA price is nearly 93% lower than it was 7 days back. LUNA ranking has also shockingly declined on CoinMarketCap. At the time of press, Terra ranked 31.
Terra, which ranked among the top 10 most valuable cryptocurrencies, dropped below $1 on Wednesday, having peaked close to $120 last month.
The majority of the losses were realised overnight, with a 98 per cent price fall in the space of just 24 hours.
The dramatic crash meant its market cap dropped from above $40 billion to just $500 million, resulting in unprecedented losses for investors in a leading cryptocurrency.
In the last month alone, 15.5% of all bitcoin wallets fell into an unrealized loss, as the world’s most popular cryptocurrency plunged to the $31,000 level, tracking tech stocks lower. Bitcoin’s close correlation to the Nasdaq challenges the argument that the cryptocurrency functions as an inflation hedge.
The current slide of Bitcoin and other cryptocurrencies is being caused by a combination of short-term and long-term inputs, including larger financial markets and the crashing of a major stablecoin.
Some of the reasons why the crash has been experienced include:
- Bitcoin is connected to the rest of the financial market
- Crypto is inherently volatile
- Worries about regulation and security breaches from governments