, 2022-05-18 15:05:03,
- The crypto market is having trouble building steam, thanks to Federal Reserve chair Jerome Powell’s recent comments
- Powell recently suggested continued pressure on the market, spooking investors
- After the comments, top cryptos like Bitcoin (BTC-USD) and Ethereum (ETH-USD) are dipping in price
The crypto market is only just getting back on its feet, but it’s already seeing new reasons for volatility. Today, the Federal Reserve seems to be to blame. Specifically, Fed Chair Jerome Powell made comments on the state of the economy. Now, crypto investors are hearing reason to believe there are more bearish catalysts ahead.
Yesterday, the crypto market at-large only just began to stabilize after a week of wild turbulence. Layer-1 decentralized app (dapp) network Terra (LUNA-USD) set the tone for this bearish downturn after its rapid decline to nearly $0. This storyline raised serious doubts for investors, for a number of reasons.
Perhaps most shocking is the sheer size of the project when it crashed; LUNA was one of the ten largest coins in the entire world by market capitalization. Now, it’s not among even the top 200. Seeing a crypto of such magnitude fall with no prior notice is sure to cause concern. But the project’s crash has also caused unease around stablecoins.
Terra’s collapse was prompted by its native TerraUSD (UST-USD) stablecoin losing its $1 peg. Stablecoins and top 10 cryptos had previously been thought of as some of the safest investments in the asset class. Now, their refuge isn’t guaranteed.
This crash led Bitcoin prices to drop beneath $30,000 once again. BTC stayed there for several days. After climbing past the $30,000 mark late last week, the coin had seemed to be holding on. Today, though, Bitcoin is slipping…
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