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Panic seizes the cryptocurrency market after several unprecedented drops

Cryptocurrencies continue to decline, causing panic among investors and even countries like El Salvador that have adopted them in their…

By admin , in news , at May 14, 2022

Cryptocurrencies continue to decline, causing panic among investors and even countries like El Salvador that have adopted them in their economies. Last Thursday, the value of bitcoin—perhaps the most representative of these currencies— fell from $32,000 to $26,000 last day.

But if there’s one particularly important matter, it’s been that of Luna, Which has become practically nothing from the value of 20,000 million In just a few days, Domino’s is creating an impact on the rest of the company stable coinsDollar-denominated cryptocurrencies.

OBS Business School professor Martin Piceras explained to EFE that the collapse of TeraUSD caused panic when it was discovered that a cryptocurrency that theoretically guarantees value in dollars does not guarantee it, Which has caused a chain effect and loss in the cryptoactive market as a whole,

In just one week, Ether has lost 18.8%, while Binance Coin is down 17.8% in the same period. In fact, CNBC estimated the loss of all cryptocurrencies in a single day at $200,000 million.

no risk to the bank

The Bank of Spain has warned that the value of the global cryptoactive market is still limited and does not represent a systemic risk, although it warns that the increase in its trading in the markets poses a growing threat to banks.

At an event of the International Derivatives Association (ISDA for its abbreviation in English), the current governor of the entity, Pablo Hernández de Casas, assured that currently Banks have limited exposure,

The cryptoactive market, he said, represented three trillion dollars in 2021 compared to 16,000 million five years ago, although it represented only 1% of global financial assets.

El Salvador is safe

The government of El Salvador, being the only country in the world, has called on its citizens to calm down after the collapse of bitcoin. en-hi en Adoption of this cryptocurrency as legal tenderFor which it invested more than $ 200 million.

Economists and opponents criticized the measure, and even the IMF called for a reversal of this economic policy. Moody’s, for its part, warned of the possibility of non-payment of debt pending amortization in the absence of a “credible plan” to meet its commitments.

Panic seizes the cryptocurrency market after several unprecedented drops

2022-05-14 14:46:23