Behind the scenes Rising inflation, which forced the US Federal Reserve to raise interest rates by half a point, the highest since 2000, is bad results. The collapse of bitcoin also coincided with a strong push to sales in the technology sector. Although with much less negative results, Ether, the second most important cryptocurrency in the world, also fell along with bitcoin, reaching its lowest value since the end of February.
"Cryptocurrencies are still a high sector risk - Matt Dibb, administrator of the Singapore Stack Funds exchange platform, told Reuters. Thus, with the collapse of the Nasdaq, all digital currencies were also crushed ”. Furthermore, the notoriously low liquidity of the cryptocurrency market over weekends and the fear that the stablecoin Terra Usd (Ust) - a cryptocurrency linked to the US dollar - may lose its peg to the dollar, has also made matters worse, according to Dibb. .
Ust is in fact kept under observation by the critpo community. Both because of how it maintains its value equal to the dollar, at a ratio of 1 to 1, and because its founders are creating a $ 10 billion reserve in bitcoin to support the currency. This means that a potential volatility of Ust can negatively affect bitcoin.
In addition to these traditional issues, there is an increase in thefts. In the first four months of 2022 alone, cybercriminals managed to steal around half a billion dollars in digital currencies.