Reuters reported on Tuesday (May 17) that the cryptocurrency market is taking a toll on many small investors as values continued to fall following a sharp decline last week.
The cryptocurrency market has been declining as investors are selling funds from riskier assets, due to fears of rising inflation and interest rates.
For example, 25-year-old Sofia has lost all her crypto savings after investing since January. Total losses amounted to about $5,000.
“I can’t believe I fell in love with crypto,” she told Reuters by phone. “I’m just trying not to get myself depressed. Crypto took my money, okay. It shouldn’t take my head.”
It came as coins saw losses across the board, with bitcoin dropping to $2,5401 on Thursday, the lowest since December 2020. But smaller coins were hit as well, with ether, the second largest token, down 15%. , and Luna, a digital currency, is losing almost all of its value.
Cryptocurrencies have seen an outpouring of interest in the past few years. Robinhood, the brokerage platform with 23 million clients overall, has added to the retail investment wave. Reuters reported that about a quarter of transaction revenue in the last quarter came from cryptocurrencies.
However, after the recent turmoil, online forums have been filled with stories like that of Isha, where retail investors have been expressing their concerns.
See also: Tether Drops 9% in $7 Billion Investor Sale
The world’s largest stablecoin has fallen victim to that too, losing 9% of its value and over $7 billion, with investors dropping off as the cryptocurrency fallout continues.
Stable coins are usually considered to be the safest bet compared to cryptocurrencies, as they are pegged to the US dollar or any other fiat currency.
However, Tether and USDC both broke their $1 and dropped to 95 cents last week.
TerraUSD or UST has completely collapsed, and the blockchain has come to a standstill as owners search for options. UST is known as Luna on the stock exchanges.
As the UST coin fell to 0.11
Where the coin fell to
LUNA and UST
The Luna coin decreased by more than 99%, as the price of one currency in the market was $90
As it collapsed to 0.0000006 US dollars
On the bright side, some traders bought the Luna currency as a kind of risk during the decline and achieved attractive profits for them, but this is a very big risk.
Some rumors spread that the cryptocurrency market is over
What do you think, is this really the end of digital currencies or just rumors?