Crypto market update: Risk aversion mood persists

By Raffaele Redi
• Updated

BTC dragged down below $30,000 as Wall Street suffered its worst loss in two years

The sell-off mood has continued to hit lead cryptos as of midday on Thursday 19 May 2022, after a risk aversion wave swept across the crypto market.

“Bitcoin was dragged down alongside [the] most risky assets as Wall Street suffered the worst loss in almost two years,” said Ed Moya, senior market analyst at Oanda. “Bitcoin remains a risky asset and vulnerable to further pain if the de-risking continues.”

The ongoing TerraUSD (UST) drama, which has followed the algorithmic stablecoin’s depegging and cost investors an estimated $42bn according to blockchain analyst Elliptic, seems to have fuelled investors move away from the crypto space with some traders liquidating their positions.

“Aggregate stablecoin supplies have declined by a total of $8.4bn over the last month, the largest in history. This reflects a net capital outflow from the space,” tweeted blockchain data and intelligence provider Glassnode.

BTC retracing below $30,000

According to Currency.com, bitcoin (BTC), the largest cryptocurrency by market capitalisation, ended yesterday at $28,673, down 5.73%. It is currently trading at $29,144.

Over the past 24 hours, BTC was trading 2.5% lower, but 2.2% higher over the previous seven days, according to CoinMarketCap. Bitcoin’s market cap was $554.8bn, representing around 44.9% of the crypto market capitalisation, while the lead crypto’s trading volume was around 8% higher at $33.2bn for the previous 24 hours.

The digital oil, ether (ETH), according to Currency.com, ended yesterday at $1,912, down 8.4%. ETH is currently trading at $1,938.

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The total crypto market capitalisation fell by $49bn from $1.287trn to $1.238trn over the past 24 hours.

Top gainers and losers

According to CoinMarketCap, of the top 100 coins and tokens, TRON (TRX), the token powering the decentralised blockchain-based operating system developed by the Tron Foundation, witnessed an increase of slightly more than 1.3% over the last 24 hours and is changing hands at $0.07267.

At the other end of the scale, TerraUSD (UST), the algorithmic stablecoin that has caused turmoil in the crypto market in recent days, recorded more than a 71% decrease over the last 24 hours and is trading at $0.09018.

Among the crypto coins and tokens with a $50,000 24-hour volume that gained or lost the most in the past 24 hours, Fairy Forest NFT (FFN) regiesterd a 1,020% increase and was trading at $0.0005378, while Mars Protocol (MARS) was down 87% and trading at $0.03099.

All cryptocurrency prices are correct as of 12:00 BST (UTC +1).

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