Bitcoin and Ethereum fall to lowest points in over a year as TerraUSD becomes unpegged

Cryptocurrencies tookanother hammering, with TerraUSDs collapse yesterday causing an industry-based panic.

Bitcoin nosedived another 14%, changing hands at US$27,039, its lowest level since the end of 2020.

Ethereum, on the other hand, has lost nearly a quarter of its value in the last 24 hours, down 23% to US$1,824, its lowest price since March last year.

According to Ipek Ozkardeskaya, yesterdays unpegging of the Terra stable coinsis causing an industry-based panic.

The Terra-USD peg is mostly based on the belief that one could always exchange Luna to guarantee a $1 peg for Terra.

But apparently that belief is not working anymore, and trust is a foremost ingredient in cryptocurrencies’ success.

So, you bet, the level of stress in other cryptocurrencies is mounting.

Terras sister coin Lunalost 94%, as Bitcoin plunged below the US$30,000 mark yesterday.

It wasnt only Terras fault; disappointing US inflation data also encouraged the selloff in Bitcoin.

Ozkardeskaya addedthat the latest crash has seen the US Treasury SecretaryJanet Yellen push for more regulation in the crypto world.

But, what the crypto industry needs right now is a returning trust, and enthusiasm regarding how the digital tokens would fit into our increasingly digitized lives, rather than government regulation.

In some of the altcoins, Solana was down 35% to US$42.01, Cardano was down 33% to US$0.4181 and Dogecoin fell 30% to US$0.07449.