Other tough days for cryptocurrencies: the collapse of the market has knocked down the value of many blockchain coins, with the result that within a month it is about a trillion dollars disappeared into thin air. It is not to be excluded that you can run into a ripple effect of epic proportions.
The collapse of cryptocurrencies is the child of the global situation
Although the “crypto” world often aspires to move in parallel with consolidated administrative systems, in one way or another the connection between the factual sphere and the digital universe has evidently not been torn apart. While it is true that the coronavirus pandemic has dictated a boom in the various blockchain systems, it is also true that the current war situation is progressively bringing the value of digital currencies back by two years.
The latest nefarious evolution of cryptocurrencies is a direct consequence of the collapse of the stablecoin TerraUSD (UST), which has failed to keep pace with a dollar increasingly subject to interest rates and inflation. UST’s value sank 30%, while its support currency, Lunasuffered a devaluation of 99%.
The other crypto assets have not been saved from the repercussions of the situation of uncertainty that overshadows world policies. Within 24 hours the price of the Bitcoin fell by 12%, that of Ethereum 22%. BNB, XRP, solana, cardano and avalanche have even more bleak landscapes, with drops ranging from 25% to 33%.
At this point, the fear is that investors will gradually decide to withdraw from the crypto sector to invest in assets with less fluctuating value, perhaps in safe-haven assets. Although understandable, this massive retreat would lead to further details to blockchain currencies, devaluing their value until they become involved in the times when they were a mere curiosity in the hands of technology fanatics.