Cryptocurrencies recovered some lost ground, with Bitcoin going above US$30,000, a sign confidence may not have been knocked too much by Terra's and
Cryptocurrencies recovered some lost ground, with Bitcoin going above US$30,000, a sign confidence may not have been knocked too much by Terra’s and Luna’s crash.
Bitcoin, the largest coin by market cap, rallied 13% to go to US$30,434, recovering from a low of US$26,000 yesterday.
Ethereum also surged 13%, climbing to US$2,100. The coin had dipped well below US$2,000 in the last 24 hours, to as low as US$1,700.
According to Ipek Ozkardeskaya, a senior analyst at Swissquote, “the dust seems to be settling in cryptocurrencies”.
“Terra and Luna are now worth almost nothing and probably won’t regain investors’ confidence.”
Terra, a stablecoin pegged to the US dollar, lost nearly all its value after an error in its algorithmic system, which manages supply, caused the coin to become unpegged. This set off mass selling, only worsening the situation.
Ozkardeskaya noted that Bitcoin rallying past US$30,000 “is a sign that the broader sector may not have been damaged as much as we first feared”.
However, “crypto investors will certainly be pickier in selecting their holdings from now on, as the Terra incident comes as a warning that cryptocurrencies can crash as fast as they emerge”.
In some of the altcoins, Solana was up 20% to US$51.99, Cardano surged 47% to US$0.5858 and XRP climbed 16% to US$0.4446.
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