Bitcoin Down to Lowest Levels Since January

Daniel Attoe
Daniel Attoe

Updated · May 09, 2022

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On Monday, the coin reached half of its November 2021 $67,566 peak.

The Slump Continues

The price of Bitcoin fell to its lowest level since January as the slump in equity markets continue to take a toll on cryptocurrencies

The largest cryptocurrency by market capitalization fell as much as $33,266 as it tested January’s $32,951 low. This carried over from a weekend that saw some other virtual coins reach record low levels. 

The second-largest coin Ether, which backs the Ethereum blockchain, reached $2,421 - the lowest point it has reached since February.

According to a Bloomberg report, monetary policies targeting runaway inflation and ebbing liquidity have given investors cold feet. 

“In light of fears of rising inflation, most investors have taken a risk-off approach - selling stocks and cryptos alike in order to cut down risk,” Vauld crypto exchange CEO Darshan Bathija told the publication.

Speculators expect the downward trend to continue, with predictions of Bitcoin testing $30,000 over the next few days.

Unstable Stablecoin

Following the movement in the cryptocurrency market, the TerraUSD (UST) stablecoin briefly lost its peg to the dollar.

Stablecoins are digital assets designed to be pegged to assets such as fiat currency, exchange-traded commodities, or other cryptocurrencies. UST maintains a peg to the US dollar.

However, over the weekend, the price briefly fell below its one-to-one dollar cost. TerraUSD’s founders have outlined plans to build a Bitcoin reserve worth $10 billion to shore up the stablecoin.

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Daniel Attoe

Daniel Attoe

Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.

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