Crypto market update: Cryptos rebound after UST storm
Stablecoin chaos and diminishing confidence in cryptos have been followed by a rebound
Most leading cryptos are rebounding today, as the sell-off mood that has dominated the crypto market following the UST drama seems to drawing to an end.
“Stablecoin chaos and lost confidence with cryptos have now been followed by a rebound. Tether, a true stablecoin that is backed by assets, saw its $1 peg to the dollar broken as contagion spilled over from the collapse of TerraUSD (UST), the algorithmic stablecoin,” said Ed Moya, senior market analyst at Oanda.
“Bitcoin (BTC) has been a casualty of the broader market sell-off of risky assets, but the latest crisis with stablecoins triggered the collapse of the USD 30,000 level, which was a key entry point for many institutional investors. Confidence has been waning in the crypto-verse but it seems we are getting close to the end of the market sell-off,” Moya said.
“Bitcoin has rebounded from $25,424, but this won’t last if risk appetite does not stabilise soon. Bitcoin is still vulnerable to one last plunge that could coincide with a stock market sell-off before many crypto investors feel the bottom is in place.”
According to Currency.com, bitcoin (BTC), the largest cryptocurrency by market capitalisation, ended yesterday down 0.19% at $28,923.55. It is currently trading at $30,384.
BTC is trading 7.8% higher over the past 24 hours but 14.9% lower over the past seven days, according to CoinMarketCap. Bitcoin’s market cap was $580.6bn, representing around 44.4% of the total crypto market capitalisation, while the lead crypto’s trading volume was around 40% lower at $52.9bn in the past 24 hours.
The digital oil, ether (ETH), ended yesterday at $1,953, down 5.92%, according to Currency.com. ETH is currently trading at $2,095.
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The total crypto market capitalisation rose by $101bn in the past 24 hours, from $1.207trn to $1.308trn.
Top gainers and losers
According to CoinMarketCap, of the top 100 coins and tokens, gala (GALA), the utility token of the Gala Games blockchain, witnessed more than a 58% increase over the last 24 hours and is changing hands at $0,09928.
On the flipside, TerraUSD (UST), the algorithmic stablecoin that caused the recent crypto turmoil after depegging from $1, recorded more than a 68% decrease over the last 24 hours and is trading at $0.1631.
Among crypto coins and tokens with a 24-hour volume of more than $50,000, MELX (MEL) witnessed a 617% increase at $0.00789, while Terra (LUNA), Terra’s native token, was down 99% at $0.00003021.
All cryptocurrency prices correct as of 12:45 BST (UTC +1).