The tumble has panicked the markets. In recent days, the most used cryptocurrencies, such as Bitcoin, Ethereum or Binance Coin, have suffered losses in value of 20% on average, as reported by the specialized site CoinGecko. Even if they are used to unexpected variations, experts and amateurs wonder about this sudden fall, to the point, sometimes, of parting with their assets. Franceinfo returns to the reasons for this crisis, which illustrates how volatile cryptocurrencies are. A reputedly stable cryptocurrency disappointed investors The turmoil in this market was largely caused by the collapse of a stablecoin (“stable currency” in French): the TerraUSD (UST). In the world of cryptocurrencies, stablecoins are supposed to have a guaranteed value, which is protected thanks to the existence of a large reserve, but which can also be maintained by complex algorithms. Problem: the systems at work behind the TerraUSD have experienced flaws and this cryptocurrency has lost more than 80% of its value in one week. The distrust then spread to other stablecoins, such as Tether, which created a wave of panic in the “crypto” sphere for a few days. Inflation is also singled out For several years now, cryptocurrencies have been gradually filling the portfolios of large banks and investment funds, which trade them like shares on the stock market. But when the economy shows worrying signals, investors tend to turn to safe havens, underlines the specialized site Forbes Advisor (article in English). This is what would be happening, while to fight the creeping inflation in the United States, the American Central Bank has just raised its interest rates by 0.5% – the first not seen since 2000 The stock markets are struggling to regain their pre-war level in Ukraine and, at the same time, the cryptocurrency market does not offer enough security in the eyes of players who wish to invest their capital. This explains part of the sales of virtual currencies in recent days, causing their value to drop. A history of rises and dips It should finally be remembered that the cryptocurrency market has always experienced major variations, without necessarily following a cyclical logic. In May 2021, after having quintupled in value in just six months, Bitcoin had for example experienced a drop of 30%, before gradually rising to reach the record value of 68,513 dollars (for one Bitcoin) on November 9, 2021. decline recorded this week presage a new surge? No analyst has yet ventured to answer this question. And if this extreme instability can frighten investors, it also fascinates many curious people, even though they are strangers to finance.
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