What's going on with the crypto crash?

The crypto crash has been fairly widespread. Bitcoin and ethereum are the flagship prices that generally signal the overall health of the industry. Since January, bitcoin has fallen as much as 60 per cent, and is currently trading at about $US23,000.

What happened to crypto exchange Kraken?

In the aftermath of such an event, the crypto media typically devolves into disputes about the culprit or catalyst. Early in 2021, crypto exchange Kraken was the scene of a flash crash in the price of Ethereum-based tokens. Across the board, their prices fell by more than 50%, before fully recovering within an hour.

Did a crypto crash wipe out $1 trillion in market value?

On Wednesday, a broad crypto crash wiped out about $1 trillion in market value — a staggering drop from $2.5 trillion just a week ago. Bitcoin, which accounts for more than 40% of the global crypto market, nosedived 30% to $30,000 on Wednesday, its lowest point since January.

What caused the cryptocurrency collapse?

The cryptocurrency collapse was caused by a lack of investor confidence. With panicked investors selling, values have plummeted. It started with the stablecoin, Terra. Stablecoins are cryptocurrencies that aim to have fixed values, often pegged to the US dollar. Terra kept its stable value – at least at first – due to an algorithm.