Bitcoin news – live: Crypto price meltdown slows as market reels from Terra collapse – The Independent

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A dramatic meltdown in bitcoin and other cryptocurrency appears to have slowed, with investors left counting their losses after one of the most dramatic plunges in recent times.
The whole market is still significantly down over the last week. Ethereum, for instance, has been particularly hard hit and lost 24 per cent of its value in the last seven days.
There are signs that dramatic fall could be turning around, however. Bitcoin is up 14 per cent over the last day – and back through the important psychological milestone of $30,000 – and the market as a whole is up 13.5 per cent.
Fear shook the market this week after the Terra (LUNA) cryptocurrency fell by more than 99 per cent overnight, and the wider crash has pushed another stablecoin, Tether, below its dollar peg.
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.
The overall crypto market has surged by nearly 10 per cent in the last day following its dramatic crash on Thursday.
Bitcoin has surged in price by about 9 per cent in the last 24 hours, inching close to $30,500.
The leading cryptocurrency is still down by over 15 per cent compared to its value a week earlier.
Ethereum has also grown by about 9 per cent in the last day.
Cardano, dogecoin, polkadot, and avalanche have each risen by over 20 per cent in the last 24 hours as Thursday’s crypto market meltdown appears to be slowing down.
The crypto market is currently valued at $ 1.3 tn, which is still close to half of its value last November.
The amount that Luna has dropped in the wake of this crash is devastating
Some people have been criticising influencers that encourage people to buy these speculative assets.
Before its crash, Luna was the fourth most popular cryptocurrency.
In an opinion piece for Coindesk, Luna founder Do Kwon has been compared to Elizabeth Holmes, the failed chief of Theranos.
“In November, he referred to a detailed hypothetical description of the attack that occurred this week as ‘the most retarded thread I’ve read this decade’,” the article says. “When two threads in January sought to explain Luna’s fragility, Kwon personally called the analysts ‘idiot,’ ‘stupid’ and ‘dumbass’,” in a move that mirrors the adamant belief Ms Holmes had in her company’s success.
Terra blockchain has resumed activity after a nine hours halt when validators planned a way to reconstitute it.
The blockchain was halted at block 7607789 around 3:00 UTC Friday.
Blocks 7607790 and 7607791 came through at around 11.27 UTC.
LUNA was at about $0.008 when the network was halted, and UST was at $0.18.
The UK government is reportedly ready to take further regulatory actions on stablecoins following the crash of Terra and Tether.
The country’s treasury was already working on plans to regulate the crypto market with a particular focus on stablecoins, CNBC reported in March.
Now, it is expected to take further actions after the latest crypto market crash.
Tesla chief Elon Musk has announced that his deal to buy Twitter is on hold.
The billionaire chief of Tesla and SpaceX has said the Twitter deal is “temporarily on hold,” until he could get more information on the social media company’s claim that less than 5 per cent of its users are fake and spam accounts.
Mr Musk, who is a vocal crypto advocate and dogecoin investor, had said last month that one of his priorities after taking over Twitter would be to crack down on cryptocurrency scam accounts on the platform, as well as potential changes to introduce methods to tip other users in cryptocurrency.
Dogecoin’s price also surged by over 30 per cent after the billionaire’s takeover of Twitter was announced in April.
Twitter’s share price has plunged by about 20 per cent in pre-market trading amid fears Elon Musk deal could be pulled.
Twitter’s share price has plunged in pre-market trading, in the wake of Elon Musk’s announcement that his deal to buy the company is on hold.
However, it remains to be seen how the latest announcement would affect the price of dogecoin and other cryptocurrencies.
US SEC Commissioner Hester Peirce has said stricter regulations on stablecoins may likely be around.
Following collapse of the stablecoin TerraUSD and Tether crashing below its dollar peg Ms Peirce has said there could be some movement for regulations around stablecoins, Reuters reported on Thursday.
“That’s an area that has obviously this week gotten a lot of attention,” she said, adding that there be room for a “trial-and-error” regulatory framework.
“There are different potential options for approaching stablecoins…and with experimentation, we need to allow room for there to be failure,” the SEC’s lone Republican commissioner said.
The American credit rating agency Fitch Ratings Inc. has said the failure of Terra’s USD stablecoin (UST) has sent “shocks through the decentralised finance sector.”
“Bouts of volatility will probably continue as the crypto sector digests the repercussions of the failure of the UST peg, and as US policy rate increases and equity volatility pressure high-beta assets,” it said in a statement.
While the potential for crypto market volatility to cause wider financial instability is limited, according to the agency, it said many regulated financial entities that have increased their exposure to cryptocurrencies in recent months could be affected if the volatility becomes severe.
After reaching a record-breaking price of over $67 thousand in Early November, bitcoin has since lost over half of its value and is now close to $30,000.
In early 2022, bitcoin crashed largely due to political unrest and subsequent internet shutdown in Kazakhstan, a crypto mining hub.
Now, the latest crash is tied to stable coin terra breaking its $1 peg, and the collapse of Luna.
This chart, created by Statista for The Independent, shows the dramatic fluctuations in bitcoin price over the years
Some experts say the worst may not be over yet.
Scottie Siu, investment director of Axion Global Asset Management – a Hong Kong-based company that runs a crypto index fund, told Reuters that there may be “more downside in the coming days.”
“I think what we need to see is the open interest collapse a lot more, so the speculators are really out of it, and that’s when I think the market will stabilize,” he has said.
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More than $1.5 trillion has been wiped from the crypto market since November
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