Did a crypto crash wipe out $1 trillion in market value?

On Wednesday, a broad crypto crash wiped out about $1 trillion in market value — a staggering drop from $2.5 trillion just a week ago. Bitcoin, which accounts for more than 40% of the global crypto market, nosedived 30% to $30,000 on Wednesday, its lowest point since January.

What did the crypto crash teach us this week?

The crypto crash taught many lessons this week. Even the top altcoins like Terra can suffer overnight losses and struggle to survive. The idea behind decentralized algorithm stablecoin, such as TerraUSD, looks fascinating, but it needs a better strategy.

Why did the crypto market shaky a week before the crash?

The crypto market had been especially shaky for about a week before the crash on Wednesday. On May 12, bitcoin fell 12% after Elon Musk walked back Tesla’s commitment to accept bitcoin as payment, citing concerns over the crytocurrency’s massive carbon footprint.

What happened to the crypto market in 2021?

The crypto markets are in turmoil, losing $600 billion dollars in a week. Bitcoin slumped below $30,000 for the first time since July 2021, which is less than half its November 2021 peak. TerraUSD and Terra have suffered the most, trading under $1 now. The crypto market has been moving in sync with the stock market for the past few months.