100s of titles, one news app for just $10 a month.
Dive Deeper:
Bitcoin set for record losing streak as 'stablecoin' collapse crushes crypto
Cryptocurrencies nursed large losses on Friday, with bitcoin trading near $30,000 and set for a record losing streak as the…
Bitcoin eyes record losing streak as 'stablecoin' collapse crushes crypto
SINGAPORE: Cryptocurrencies nursed large losses on Friday, with bitcoin pinned below US$30,000 and set for a record losing streak as…
Crypto market takes breather from selloff, Bitcoin nears $31k; Is the worst over?
In Fitch's opinion, there could be significant negative repercussions for cryptocurrencies and digital finance if investors lose confidence in stablecoins.
Bitcoin falls below $26,000, tether briefly edges down from $1 peg
Cryptocurrencies have been hit by a steep stock selloff and the decoupling of a major stablecoin from its peg
One subscription that gives you access to news from hundreds of sites
Tether Loses Dollar Peg as Crypto Anxiety Hits No. 1 Stablecoin
Dominoes are falling in crypto. First it was the collapse of algorithmic stablecoin TerraUSD, sowing turbulence in the broader market.…
Bitcoin, Ethereum, Dogecoin Just Under Key Levels After Crypto Crash — Analyst Says Investors Vulnerable To 'One Last Plunge'
Bitcoin and Ethereum hovered just under key psychological levels, as the global cryptocurrency market cap declined 2.2% to $1.2 trillion…
Get all your news in one place
Latest Technology news:
Bentley's First EV Will Pack Up To 1,400 HP, Do 0-60 In 1.5 Seconds
Bentley's CEO says the main attribute of the EV will be "effortless overtaking performance from a huge amount of torque…
Read news from The Economist, FT, Bloomberg and more, with one subscription
Learn More
Rivian Seat Supply Issue Puts Amazon Electric Van Production Into Question
The EV startup is now reportedly negotiating with its seat supplier after the former filed a lawsuit after the latter…
Microsoft Announces Changes after Cloud Computing Complaints
Microsoft, which had been fined 1.6 billion euros ($1.7 billion) by EU antitrust regulators, will revise its licensing terms and…
2023 BMW XM Spotted With No Camouflage Looking Like The Concept
The new dedicated M model is as striking as ever, will surely split opinions as it looks almost the same…
Jony Ive had one wacky idea for Apple's mixed reality headset
A new report details Apple's internal conflicts over its long-rumored mixed reality headset and the odd features it might ship…
From analysis to good news, read the world’s best news in one place
VW ID. Buzz Starts At €64,581 In Germany, ID. Buzz Cargo At €54,430
That's approximately $67,000 for the short-wheelbase passenger version, but the US will get the long-wheelbase model with different specs and…
Genesis GV60 To Come With 3 Years Of Free Charging On The Electrify America Network
We examine the announcement that Electrify America and Genesis have partnered to offer three years of unlimited charging for Genesis…

Bitcoin Set for Record Losing Streak as ‘Stablecoin’ Collapse Crushes Crypto

By Asharq Al-Awsat
05 March 2022, Berlin: A coin bearing the logo of the bitcoin cryptocurrency lies on a table. (dpa)

Cryptocurrencies nursed large losses on Friday, with bitcoin trading near $30,000 and set for a record losing streak as the collapse of TerraUSD, a so-called stablecoin, rippled through markets.

Crypto assets have also been swept up in broad selling of risky investments on worries about high inflation and rising interest rates. Sentiment is particularly fragile, as tokens supposed to be pegged to the dollar have faltered.

Bitcoin, the largest cryptocurrency by total market value, managed to bounce in the Asia session and traded at $30,300 at 0623 GMT, up 5%. It has staged something of a recovery from a 16-month low of around $25,400 reached on Thursday.

But it remains far below week-ago levels of around $40,000 and, unless there is a rebound in weekend trade, is headed for a record seventh consecutive weekly loss.

"I don't think the worst is over," said Scottie Siu, investment director of Axion Global Asset Management, a Hong Kong based firm that runs a crypto index fund.

"I think there is more downside in the coming days. I think what we need to see is the open interest collapse a lot more, so the speculators are really out of it, and that's when I think the market will stabilize."

TerraUSD (USDT) broke its 1:1 peg to the dollar this week, as its mechanism for remaining stable, using another digital token, failed under selling pressure. It last traded near 10 cents.

Tether, the biggest stablecoin and one whose developers say is backed by dollar assets, has also come under pressure and fell to 95 cents on Thursday, according to CoinMarketCap data, but was back at one dollar on Friday.

Unstable

Selling has roughly halved the global market value of cryptocurrencies since November, but the drawdown has turned to panic in recent sessions with the squeeze on stablecoins.

These are tokens pegged to the value of traditional assets, often the US dollar, and are the main medium for moving money between cryptocurrencies or to convert balances to fiat cash.

"Over half of all bitcoin and ether traded on exchanges are versus a stablecoin, with USDT or Tether taking the largest share," analysts at Morgan Stanley said in a research note.

"For these types of stablecoins, the market needs to trust that the issuer holds sufficient liquid assets they would be able to sell in times of market stress."

Tether's operating company says it has the necessary assets in Treasuries, cash, corporate bonds and other money-market products.

But Tether is likely to face further tests if traders keep selling, and analysts are concerned that stress could spill over into money markets if pressure forces more and more liquidation.

Ether, the second-largest cryptocurrency by market capitalization, steadied near $2,000 on Friday after a drop as low as $1,700 on Thursday. Bitcoin and ether are about 60% below record peaks reached in November.

Crypto-related stocks have also copped a pounding, with shares in broker Coinbase steadying overnight but still down by half in little more than a week.

In Asia, Hong Kong-listed Huobi Technology and BC Technology Group, which operate trading platforms and other crypto services, eyed weekly drops of more than 17%.

Amid the turmoil, Nomura on Friday said it had begun offering bitcoin derivatives to clients, the latest move by a traditional financial institution into the asset class.

What is inkl?
The world’s most important news, from 100+ trusted global sources, in one place.
Morning Edition
Your daily
news overview

Morning Edition ensures you start your day well informed.

No paywalls, no clickbait, no ads
Enjoy beautiful reading

Content is only half the story. The world's best news experience is free from distraction: ad-free, clickbait-free, and beautifully designed.

Expert Curation
The news you need to know

Stories are ranked by proprietary algorithms based on importance and curated by real news journalists to ensure that you receive the most important stories as they break.

Dive Deeper:
Bitcoin set for record losing streak as 'stablecoin' collapse crushes crypto
Cryptocurrencies nursed large losses on Friday, with bitcoin trading near $30,000 and set for a record losing streak as the…
Bitcoin eyes record losing streak as 'stablecoin' collapse crushes crypto
SINGAPORE: Cryptocurrencies nursed large losses on Friday, with bitcoin pinned below US$30,000 and set for a record losing streak as…
Crypto market takes breather from selloff, Bitcoin nears $31k; Is the worst over?
In Fitch's opinion, there could be significant negative repercussions for cryptocurrencies and digital finance if investors lose confidence in stablecoins.
Bitcoin falls below $26,000, tether briefly edges down from $1 peg
Cryptocurrencies have been hit by a steep stock selloff and the decoupling of a major stablecoin from its peg
One subscription that gives you access to news from hundreds of sites
Tether Loses Dollar Peg as Crypto Anxiety Hits No. 1 Stablecoin
Dominoes are falling in crypto. First it was the collapse of algorithmic stablecoin TerraUSD, sowing turbulence in the broader market.…
Bitcoin, Ethereum, Dogecoin Just Under Key Levels After Crypto Crash — Analyst Says Investors Vulnerable To 'One Last Plunge'
Bitcoin and Ethereum hovered just under key psychological levels, as the global cryptocurrency market cap declined 2.2% to $1.2 trillion…
Get all your news in one place