Carnage in crypto markets, more than $200 billion wiped off in 24 hours

New Delhi: According to CoinMarketCap, a major sell-off in cryptocurrency wiped off more than $200 billion in wealth from the market within a period of 24 hours. The board plunge in the crypto complex was followed after the collapse of the TerraUSD stablecoin hit the major tokens hard.

Bitcoin suffered a downfall of at least 10% on the last day to its lowest level since December 2020. Besides, Ethereum also dropped as much as 16%.

A quick take on why TerraUSD goes so wobbly?

The crypto massacre showed signs of spreading further on Thursday with crypto-related stocks in Asia also cratered. Hong Kong-listed fintech firm, BC Technology Group Ltd. closed down 6.7%. Japan’s Monex Group Inc. under which falls the TradeStation and Coincheck marketplaces ended the day down 10%.

Meanwhile, digital tokens have faced selling pressure amid a broader flight from risk assets with central banks across the world have tightened monetary policy to fight inflation. S&P 500 futures lost 0.8% on Thursday, tracking losses in the benchmark MSCI Asia Pacific Index.

Investors have suffered wild swings in the market, though being it a common phenomenon. However, Bitcoin and Ethereum pared losses quickly to trade down 4.2% and 9% respectively as of Thursday afternoon.