Cryptocurrencies Drop Anew as TerraUSD’s Woes Cloud the Outlook.Cryptocurrencies resumed declines as the collapse of the TerraUSD stablecoin triggers a flight from many popular digital tokens.
Bitcoin shed as much as 6.1% on Thursday, falling below $27,000 to the lowest since 2020.
Ether slid up to 12%, while tokens like
Avalanche and Solana that underpin some key decentralized finance protocols also retreated.
Virtual coins had earlier posted double-digit intraday percentage gains but the rally fizzled. The TerraUSD stablecoin was still below it $1 intended peg, while the affiliated token Luna tumbled.
The crypto sector overall is nursing heavy losses for the week and sentiment remains fragile. The various stablecoins taken together are worth well over $100 billion, and a widening loss of confidence could be an existential test for the digital-asset ecosystem.
The TerraUSD algorithmic stablecoin has been bouncing between 30 cents and 90 cents and was around 66 cents as of 6:18 am in London.*Source
