The global cryptocurrency market’s free fall continued on Thursday, with over $275 billion wiped off its global market cap in just 24 hours, and Bitcoin dropping to nearly $27,000 – a level last seen in December 2020.
The global cryptocurrency market cap has reached $1.25 trillion, down 13% in the last 24 hours. Bitcoin controls roughly one-third of the cryptocurrency market.
The total collapse of Terra Luna cryptocurrency, which was linked to the US dollar, triggered the global crypto mayhem.
The cryptocurrency Tether (USDT) fell to 97 cents, losing parity with US dollars.
According to CoinDesk, traders sold USDT for US dollars due to a lack of enthusiasm in crypto communities for stablecoins.
Furthermore, rising inflation around the world has investors concerned about an impending economic slowdown.
Ethereum has also lost around 20% in the last 24 hours.
Shiba Inu, Dogecoin, Solana, and Cardano have all lost roughly one-third of their value.
The global cryptocurrency market cap was trading at $1.25 trillion, down 13% in the previous 24 hours. However, total cryptocurrency trading volume increased by about 40% to $218.14 billion.
The drop can be attributed to concern about the US Federal Reserve’s determination to combat inflation. The Federal Reserve raised interest rates by 50 basis points last week.
According to a new report, bitcoin investors are likely to lose up to $545 million this year due to a variety of factors such as forgetting wallet passwords or making mistakes when recording their “seed phrases.”
A seed phrase is a string of words generated by your cryptocurrency wallet that allows you to access the cryptocurrency associated with that wallet.
Analysts estimate that at least 20% of all Bitcoin is lost, with the vast majority of those funds irretrievably lost.
According to CryptoAssetRecovery.com research, between $272 million and $545 million in Bitcoin will be lost this year.