Crypto Market Suffers US$1B in Liquidations as Bitcoin Slumps
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The cryptocurrency market, renowned for its rapid price fluctuations, experienced a tumultuous period as Bitcoin's value plummeted, resulting in a staggering $1 billion in liquidations.
Bitcoin, the largest cryptocurrency, fell as much as 9% to US$25,000 on Thursday, its lowest level since December 2020. Other major cryptocurrencies also fell, with Ethereum, the second-largest cryptocurrency, dropping 12% to US$1,250.
The sell-off was triggered by a number of factors, including the collapse of the Terra ecosystem, which saw the value of its native token, LUNA, plummet to zero. The Terra ecosystem was a major player in the decentralized finance (DeFi) space, and its collapse has shaken confidence in the entire DeFi sector.
The sell-off was triggered by a number of factors, including the collapse of the Terra ecosystem, which saw the value of its native token, LUNA, plummet to zero. The Terra ecosystem was a major player in the decentralized finance (DeFi) space, and its collapse has shaken confidence in the entire DeFi sector.
Another factor that contributed to the sell-off was the recent sell-off in the stock market. The US stock market has been under pressure in recent weeks, as investors have become concerned about the rising inflation and the potential for a recession.
The sell-off in the stock market has also led to a sell-off in cryptocurrencies, as investors have become more risk-averse.
It is unclear how long the current sell-off in the cryptocurrency market will last. However, it is important to remember that the cryptocurrency market is volatile and that prices can fluctuate wildly. Investors should only invest money that they can afford to lose.
It is important to note that the crypto market is still in its early stages of development, and it is prone to volatility. Investors should be prepared for the possibility of further sell-offs in the future.