At the time of this article’s publication, bitcoin andEther traded just below their psychological threshold as global crypto market capitalization lost another 2.2% to $1.2 trillion.
Performance of major coins Token 24 hours to 7 days Price Bitcoin (CRYPTO:BTC) +0.9% – 20.1% 29,181.06 USD Ethereum (CRYPTO:ETH) – 5.3% – 28.35% 1 $969.01 Dogecoin (CRYPTO:DOGE) – 3.45% – 33.6% $0.08 24 Hour Top Earnings (Data sourced from CoinMarketCap) 24 Hour Token % Change (+/-) ApeCoin Price ( CRYPTO:APE) +45.8% $8.24 Quantity (CRYPTO:QNT) +17.25% $72.35 Maker (CRYPTO: MCR) +17.2% $1,317.02
Why is it important
On Thursday, BTC and ETH prices hit lows of $26,350.49 and $1,748.30 respectively amid the global crypto crash.
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The market reported losses of more than $200 billion in a single day as investors feared the fallout from the fiasco TerraUSD (CRYPTO:UST) at the price of Bitcoin.
The panic only intensified when leash (CRYPTO:USDT), the first stablecoin by market cap, also began to lose its peg to the dollar as traders traded the coin against the US currency.
At the time, USDT was trading at $0.9974, hitting an intraday low of $0.9485.
Analyst at GlobalBlock, Marcus Sotiriouwrote in a note that the collapse of Tether would be catastrophic due to its dominant market cap.
“While losing the USDT peg is a significant risk, I am confident that the coin will recover soon as it has enough reserves to back it up and its mechanisms are more secure than those of UST.”
The largest whale addresses burned a total of $710 million on Thursday, the largest single-day coin liquidation of 100,000 to 10 million addresses in Tether history. Saniment.
Just in case there was any doubt about the seriousness of #Tether’s loss of its $1 peg, the main whale addresses dropped a total of $710 million in USD today. This is the largest one-day address reset between 100,000 and 10,000,000 $ USDT in the biggest #crypto #stablecoin history. https://t.co/oJVZbgvGbt pic.twitter.com/N7shiVIEz6
— Sentiment (@santimentfeed) May 12, 2022
Senior Market Analyst, OANDA Edward Moyaargued that “we are nearing the end of this sell-off,” but that BTC’s rebound “will not last long unless risk appetite stabilizes soon.”
“Bitcoin is still vulnerable to a final drop that could coincide with a sell-off before many traders believe the token has bottomed out,” he added.
Shares traded higher on the stock market, with S&P and Nasdaq futures up +0.6% and +0.9%, respectively. Benchmark 10-year bond yields fell 0.071% to 2.843 as recession fears rattled investors, Reuters reported.
The dollar index (DXY), which tracks the strength of the dollar against a basket of six other currencies, hit 104.22, its highest level since December 2002, Reuters said in a separate report.
Cryptocurrency trader Justin Bennett tweeted that there is a strong possibility that bitcoin will experience a relief rally that will “exceed all expectations”.
There is a good chance that #crypto has hit a local bottom if BTC can get back $28,800 today.
Like the sell-off, the aid rally is likely to exceed all expectations.
— Justin Bennett (@JustinBennettFX) May 12, 2022
Ethereum Whales Bought Cheaper Thursday, Chartist Says Ali Martinezwhile large bitcoin addresses opted to reduce their exposure to risk.
#Ethereum whales are being bought!
The number of addresses with a balance of more than $1,000 ETH increased by 0.81%, adding 180,000 #ETH to their holdings. pic.twitter.com/1UTjR1lyQ8
— Ali Martinez (@ali_charts) May 12, 2022
#Bitcoin whales keep going offline!
The number of addresses with a balance of more than 1,000 BTC has fallen to a three-month low of 2,237 addresses. pic.twitter.com/L0FV1EctVE
— Ali Martinez (@ali_charts) May 12, 2022