According to CoinMarketCap, the global crypto market The cap rose by $1.32 trillion to 8.25% over the previous day. However, the total crypto market volume was around $139.52 billion in the last 24 hours, a decrease of 39.10%.
Furthermore, the total volume of DeFi is currently around $11.09 billion, which is 7.95% of the total 24-hour volume of the crypto market. Furthermore, the volume of all stablecoins stands at $126.65 billion – which is 90.78% of the total crypto market’s 24-hour volume.
Bitcoin is currently trading at $30,666.35 with an increase of 3.77%. The crypto has touched the day’s high of $30,924.80. It also declined to an intraday low of $28,031.78. Bitcoin dominance is currently at 44.21%, down 0.59% on the day.
Counterpart Ethereum is currently trading above 5%.
Earlier this week, bitcoin fell below the $25,000 mark.
However, in the past seven days, according to CoinMarketCap live tracking data, Bitcoin is down by more than 15% and Ethereum is down about 22%.
However, TeraUSD, the so-called stablecoin, continued to crash. The crypto fell over 60% today and went below 15 cents.
Due to tighter pressure on stablecoins, the crypto markets faced panic pressure in recent sessions. The global market cap of cryptocurrencies has almost halved since November.
The crypto markets were off a cliff this week due to the collapse of the TeraUSD (UST), which wiped out the 1:1 peg for the dollar.
Terra’s free-floating cryptocurrency called Luna also fell to near-zero levels. Currently, Luna is down 99.69% in the last 24 hours.
A Reuters report cited a Morgan Stanley research note that said more than half of all bitcoin and ether traded on exchanges are stablecoins, with USDT or Tether taking the largest share. The note added that for these types of stablecoins, the market needs to trust that the issuer has sufficient liquid assets that they will be able to sell during times of market stress.
Talking about the recent crash in cryptocurrency, Nischal Shetty, co-founder and CEO of WazirX, said, “The significant decline we are seeing in crypto is a global phenomenon. It is primarily attributed to developments in the macro-environment. Can be attributed such as increased inflation, increase in interest rates by Federal Reserve, Russo-Ukraine war, etc. It is also interesting to note that crypto markets are mirroring traditional financial markets as both are witnessing a correction. This indicates that the crypto markets are attaining maturity – like other markets, there is a bear and bull race in crypto and currently, we are going through a bearish phase.”
Tracking the current recovery in bitcoin, a Bloomberg report noted that the latest drop from bitcoin broke the price below $25,000, but the coin closed in the green on Thursday in an intraday recovery. That rally generated a so-called “Doji” candlestick with a long lower tail, which technical analysts can read as a selling climax. Over the past 12 months, the appearance of a doji during periods of falling prices has almost always been followed by a relief rally. If the upside increases in the current case, resistance between $33,000-$34,500 could come into play.
In its latest research note on Thursday, Fitch Ratings said the failure to peg Terra has sent shockwaves through the decentralized finance (DFI) sector, with a leading savings and lending protocol that anchors large swaths of UST-collateralized loans. But looking at the liquidation and pricing. Other crypto tokens are also being affected. This has triggered more liquidations throughout the ecosystem, for example on the AAVE protocol. Volatility will continue as the crypto sector digests the consequences of the failure of the UST peg, and as US policy rates rise and equity volatility puts pressure on high-beta assets.
According to Fitch, if investors lose faith in stablecoins, there could be significant negative consequences for cryptocurrencies and digital finance. The latter play an important role in catalyzing the crypto ecosystem more broadly, by providing a stable link to the fiat-currency financial markets.
According to Fitch, the failure of the algorithmic peg mechanism that sets the price of Terra’s USD stablecoin (UST) and Tether’s unmooring from its USD peg highlight the fragile nature of private stablecoins, and will intensify calls for regulation.
It said, “The relationship between crypto markets and regulated financial markets remains weak. We expect this to limit crypto market volatility’s ability to spread and cause widespread financial instability. has increased its exposure to cryptocurrencies. and other forms of digital finance in recent months, and some Fitch-rated issuers may be affected if volatility in the crypto market becomes severe.”
As for India, WazirX co-founder and CEO said, “In India, we have seen declining buying sentiment as buyers have marginal dominance over the market. Since April, this behavior has also been repeated as 75% The trading session has been buyer’s – dominance. Buying behavior shows that investor confidence in the market remains intact even at current levels.”