Terra Luna and Bitcoin price news LIVE – Cryptocurrency meltdown slows but Ethereum hit 24% in a week

By May 13, 2022DeFi
Click here to view original web page at www.thesun.co.uk

ETHEREUM has become the latest cryptocurrency to plummet in a market-wide crash that's costing investors "billions".

The cryptocurrency coin has been particularly hard hit and lost 24 per cent of its value in the last seven days.

It comes hot on the heels of the Terra (LUNA) cryptocurrency falling by more than 99 per cent.

The Terra coin, which ranked among the top 10 most valuable cryptocurrencies before today's crash, has now seen the fortunes of crypto investors wiped out.

The dramatic drop meant its market cap dropped from above $40bn (£32bn) to just $500m (£409m) - resulting in unprecedented losses for those who invested in the currency.

The majority of the losses were realised overnight - with a 98 per cent price fall in the space of just 24 hours.

And Bitcoin has also plunged 11.24 per cent as investors suffer heavy losses.

Crypto is much riskier than other investments because they are highly volatile - their price often rises and falls in the blink of an eye and sometimes seemingly for no reason.

Many cryptocurrencies have a short track record, making them difficult to understand and predict.

This type of investment is also not protected by the regulator which means you have no protection if things go wrong.

You can be left with less money than you put in, and could even lose it all - even if you spend on what appears to be a safe bet.

Read our Bitcoin live blog below for the latest news and updates...

  • Milica Cosic just now

    Crypto crash wipes away $600billion in value

    MOST major cryptocurrencies have dropped by 20% or more in the past week as the crypto market plunged severely.

    The recent bear market has erased more than $600billion in market capitalization from the market, according to Barrons.

    Bitcoin is down from $36,190 per coin on May 5 to $28,629 - a drop of more than 21%.

    Ethereum has similarly dropped almost 30% since May 5, from $2,742 a week ago to $1,937.

    Cryptocurrencies have become somewhat notorious for sudden and unpredictable booms and busts - coins can plummet or skyrocket in a matter of minutes.

    This volatility makes crypto investments riskier than other types of investment.

  • Milica Cosic just now

    The 5 risks of crypto investments

    THE Sun's consumer team round up the five major risks of investing in cryptocurrencies:

    • Consumer protection - Some investments advertising high returns based on cryptoassets may not be subject to regulation beyond anti-money laundering requirements.
    • Price volatility - Significant price volatility in cryptoassets, combined with the inherent difficulties of valuing cryptoassets reliably, places consumers at a high risk of losses.
    • Product complexity - The complexity of some products and services relating to cryptoassets can make it hard for consumers to understand the risks. There is no guarantee that cryptoassets can be converted back into cash. Converting a cryptoasset back to cash depends on demand and supply existing in the market.
    • Charges and fees - Consumers should consider the impact of fees and charges on their investment which may be more than those for regulated investment products.
    • Marketing materials - Firms may overstate the returns of products or understate the risks involved.
  • Milica Cosic just now

    In depth: What is Luna? (2/2)

    A drop in UST price created an unstable market for the stablecoin, however.

    "The slump in the Luna is tied to the selloff that ensued after millions of tokens were issued to restore UST’s 1:1 peg," Finder.com markets editor Luzi Ann Javier told The Sun.

    "Stablecoins were supposed to shield investors from the gyrations in the crypto market with its peg to the dollar.

    "When that peg was broken, it shook investor confidence not just in stablecoins but across decentralized finance."

    Luna broke $1 for the first time in January 2021 and struggled to break past $35 until July.

    From there, the price of Luna tumultuously climbed to new peaks every few months before cratering this week.

    As a result of Luna's price collapse, UST dropped to $0.55 after sitting consistently around $1 since January 2021, according to CoinMarketCap.

  • Milica Cosic just now

    In depth: What is Luna? (1/2)

    Luna, also known as Terra, is one of two major coins created by Terra Labs, a South Korean company.

    The Luna Foundation Guard, the organization that supports Luna's price, has nearly 30,000 bitcoins in reserve to back the stablecoin, according to Bitcoinist.

    The other coin from Terra Labs, TerraUSD or UST, is linked to Luna.

    According to Coindesk, the price of UST is "algorithmically stabilized" through smart contracts involving its sister coin.

    UST is pegged at $1 through a process of destroying Luna coins and minting UST.

    Theoretically, this process is supposed to make Luna more valuable as it becomes more scarce, and keep the price of UST from moving above its $1 benchmark.

  • Joseph Gamp just now

    Is Coinbase safe?

    Buying and selling cryptocurrencies such as bitcoin and ethereum isn't regulated.

    This is one of the reasons it is very risky as there is no protection if your money is lost or stolen.

    Coinbase is a legitimate company and must comply with certain laws covering financial services and consumer protection in the US where it's based.

    The company says that it complies with "all applicable laws and regulations in each jurisdiction in which it operates"

  • Joseph Gamp just now

    Crypto predictions

    Investors shouldn't expect any immediate relief in the crypto market.

    "Short term, there could be more blood to come," said Alex Enser, founder of My Crypto Advisor.

    He said that during bear markets, altcoins tend to lose around 85% to 90% of their value.

    Experts project that Bitcoin and Ethereum will continue to fall as well.

    FXStreet predicts Bitcoin could tumble as low as $19,000, and Ethereum could bottom out below $1,500.

    Mr Enser similarly expects Bitcoin to drop to the $19,000 to $21,000 range.

    UST's founder is attempting to repeg the coin with the $1, but it may never regain its footing.

    "If UST does restabilize, it's a good opportunity but it's definitely a gamble," Enser said.

    "We have no idea how that's going to play out."

  • Joseph Gamp just now

    WARNING: Cryptocurrency marketplace a target for fraudsters

    The cryptocurrency marketplace is a target for fraud, so make sure you do your research before investing in anything.

    More than £2million was lost to cryptocurrency scams – that’s over £10,000 per person – between June and July 2018, according to Action Fraud.

    The most common crypto currency scams are:

    • Fake exchanges
    • Fake wallets
    • Phishing scams
    • Ponzi scams where they make unrealistic claims about returns

    And the European Banking Authority (EBA) has warned that some of the biggest cryptocurrency risks are:

    • Money may be stolen from your ‘digital wallet’
    • The volatility of the investment
    • Losing your money is the exchange platform collapses
  • Joseph Gamp just now

    ‘The higher the promised return, the higher the risk’

    Cryptocurrencies are considered high-risk because they are unregulated.

    This means you might not be covered by a financial authority if you lose your investment amongst crypto’s highly volatile marketplace.

    According to Government website MoneyHelper, there are six key points to remember when investing in a high-risk product such as crypto.

    Would-be investors are urged to consider the following:

    • The higher the return promised, the higher the risk.
    • Your investments may not be covered under the Financial Services Compensation Scheme (FSCS), unless there has been misconduct by an authorised adviser or arranger (For example, if the product was mis-sold).
    • Consider only investing what you can afford to lose if investment is not covered by the FSCS
    • Don’t assume it’s a safe investment just because it can be held in an ISA.
    • Seeking independent financial advice is important, so you understand fully what you’re investing in.
    • If the prospect of losing money in an investment product is likely to give you sleepless nights, it’s almost certainly too risky for you.
  • Joseph Gamp just now

    Why have crypto markets been down?

    Cryptocurrencies have been especially volatile lately and there a few reasons why.

    Twitter’s chief financial officer Ned Segal said at the end of last year that investing in crypto “doesn’t make sense right now”, causing concern among Silicon Valley buyers.

    China also announced plans to clean up virtual currency mining, according to CNBC.

    Many crypto-mining regions in China are now radically reducing operations.

    Previous moves by the country to crackdown on mining and trading of crypto has previously sent markets plunging.

    And the unrest in Eastern Europe has contributed to the fall because investors tend to shun risk-sensitive assets during uncertain times.

  • Joseph Gamp 26 minutes ago

    Crypto is volatile

    Crypto is much riskier than other investments because they are highly volatile – their price often rises and falls very quickly, sometimes seemingly for no reason.

    Many cryptocurrencies have a short track record, making them difficult to understand and predict.

    This type of investment is also not protected by the regulator which means you have no protection if things go wrong.

  • Joseph Gamp Today, 00:00

    In depth: What is Luna? (2/2)

    Theoretically, this process is supposed to make Luna more valuable as it becomes more scarce, and keep the price of UST from moving above its $1 benchmark.

    A drop in UST price created an unstable market for the stablecoin, however.

    “The slump in the Luna is tied to the selloff that ensued after millions of tokens were issued to restore UST’s 1:1 peg,” Finder.com markets editor Luzi Ann Javier told The Sun.

    “Stablecoins were supposed to shield investors from the gyrations in the crypto market with its peg to the dollar.

    “When that peg was broken, it shook investor confidence not just in stablecoins but across decentralized finance.”

    Luna broke $1 for the first time in January 2021 and struggled to break past $35 until July.

    From there, the price of Luna tumultuously climbed to new peaks every few months before cratering this week.As a result of Luna’s price collapse, UST dropped to $0.55 after sitting consistently around $1 since January 2021, according to CoinMarketCap.

  • Joseph Gamp 12th May 2022, 22:00

    In depth: What is Luna? (1/2)

    Luna, also known as Terra, is one of two major coins created by Terra Labs, a South Korean company.

    The Luna Foundation Guard, the organization that supports Luna’s price, has nearly 30,000 bitcoins in reserve to back the stablecoin, according to Bitcoinist.

    The other coin from Terra Labs, TerraUSD or UST, is linked to Luna.

    According to Coindesk, the price of UST is “algorithmically stabilized” through smart contracts involving its sister coin.

    UST is pegged at $1 through a process of destroying Luna coins and minting UST.

  • Joseph Gamp 12th May 2022, 21:02

    ‘I lost my life savings’

    Following the crash, one member of the r/TerraLuna sub-Reddit wrote “I lost all my life savings”.

    “Had bought Luna at $85, not sure what to do.”

    Another wrote that they had lost $15,000 after failing to sell their holdings for a substantial profit when it was trading above $100 last month.

    “I should’ve cashed out when it was $100, then I would have been up $25,000,” wrote Reddit user No-Forever.

    “But I got greedy hoping to get more money so I can at least afford a downpayment for a house for my family. I guess no house and savings then.”

  • Joseph Gamp 12th May 2022, 20:30

    How do I buy Bitcoin and how can I spend it?

    Several marketplaces called “Bitcoin exchanges” allow people to buy or sell Bitcoins using different currencies.

    People can also send Bitcoins to each other using mobile apps or their computers in the same way people send cash digitally.

    You are also able to purchase Bitcoin through an online exchange or Bitcoin ATM.

    If you have invested in Bitcoin, you can set up a virtual wallet to store, keep track and spend your digital money - but very few businesses accept Bitcoin as a form of payment.

    You can use the Where To Spend Bitcoin UK website to find merchants that accept the currency.

  • Joseph Gamp 12th May 2022, 19:59

    Why has the Bitcoin price gone down?

    The value of Bitcoin is determined by how much people are willing to exchange it for and its price has fluctuated wildly since its launch.

    It's currently valued at around $$29,386 - down by more than 6% over the past 24 hours, according to CoinMarketCap.

    That is a long way down from last year when the currency hit record highs of nearly $69,000, helped by El Salvador making Bitcoin legal tender and regulatory approval of a Bitcoin futures ETF in the US.

    Since then, it has seen regular slumps - eventually dropping to its current price - with the latest fall reflecting global markets.

  • Joseph Gamp 12th May 2022, 19:14

    WARNING: The five major risks of crypto investment

    Investing in cryptocurrency is a very risky business.

    You can be left with less money than you put in, and could even lose it all – even if you spend on what appears to be a safe bet.

    With this in mind, The Sun’s trusted consumer team have rounded-up the five major risks of investing in cryptocurrencies.

    These include:

    • Consumer protection: Some investments advertising high returns based on cryptoassets may not be subject to regulation beyond anti-money laundering requirements.
    • Price volatility: Significant price volatility in cryptoassets, combined with the inherent difficulties of valuing cryptoassets reliably, places consumers at a high risk of losses.
    • Product complexity: The complexity of some products and services relating to cryptoassets can make it hard for consumers to understand the risks. There is no guarantee that cryptoassets can be converted back into cash. Converting a cryptoasset back to cash depends on demand and supply existing in the market.
    • Charges and fees: Consumers should consider the impact of fees and charges on their investment which may be more than those for regulated investment products.
    • Marketing materials: Firms may overstate the returns of products or understate the risks involved.
  • Joseph Gamp 12th May 2022, 18:30

    Bitcoin’s richest trader loses $800MILLION in one day

    BITCOIN’s richest trader lost a hefty $800million (£591m) in a single day earlier this year in a sign of how volatile the cryptocurrency market can be.

    The cryptocurrency (BTC) has plunged to $42,963, a drop of just under one per cent on January 6.

    At just after midnight, Bitcoin was trading at $43,515.

    The mystery trader, who owns the largest share of Bitcoin in the world – some 288,000 of them – began seeing their fortune fade in the early hours.

    Wallet 34xp4vRoCGJym3xR7yCVPFHoCNxv4Twseo had $16.29billion (£12.28bn) worth of the crypto on the Friday.

    But by Saturday morning, that had dropped to $15.45billion (£11.65bn) then to $13.81billion (£10.41bn) by the evening, wiping out $2.48 billion in one day.

    In fact, the unlucky trader has seen the value of his stash sink by $5.5million (£4.15m) in less than a month.

    Read the article in full here.

  • Joseph Gamp 12th May 2022, 18:00

    WARNING: Cryptocurrency marketplace a target for fraudsters

    The cryptocurrency marketplace is a target for fraud, so make sure you do your research before investing in anything.

    More than £2million was lost to cryptocurrency scams - that’s over £10,000 per person - between June and July 2018, according to Action Fraud.

    The most common crypto currency scams are:

    • Fake exchanges
    • Fake wallets
    • Phishing scams
    • Ponzi scams where they make unrealistic claims about returns

    And the European Banking Authority (EBA) has warned that some of the biggest cryptocurrency risks are:

    • Money may be stolen from your ‘digital wallet’
    • The volatility of the investment
    • Losing your money is the exchange platform collapses
  • Joseph Gamp 12th May 2022, 17:30

    'The higher the promised return, the higher the risk'

    Cryptocurrencies are considered high-risk because they are unregulated.

    This means you might not be covered by a financial authority if you lose your investment amongst crypto's highly volatile marketplace.

    According to Government website MoneyHelper, there are six key points to remember when investing in a high-risk product such as crypto.

    Would-be investors are urged to consider the following:

    • The higher the return promised, the higher the risk.
    • Your investments may not be covered under the Financial Services Compensation Scheme (FSCS), unless there has been misconduct by an authorised adviser or arranger (For example, if the product was mis-sold).
    • Consider only investing what you can afford to lose if investment is not covered by the FSCS
    • Don’t assume it’s a safe investment just because it can be held in an ISA.
    • Seeking independent financial advice is important, so you understand fully what you’re investing in.
    • If the prospect of losing money in an investment product is likely to give you sleepless nights, it’s almost certainly too risky for you.
  • Joseph Gamp 12th May 2022, 17:00

    Why did Luna crash and what is a stablecoin?

    Luna's sudden price collapse comes as a surprise because it's a stablecoin.

    Stablecoins are backed by other assets in an attempt to limit volatility.

    Luna saw its first major spike last summer and climbed through the fall and winter.

    The coin's price peaked at $116 in early April, but as of May 11, it sat at $2.55 - down 90% in the past 24 hours, according to CoinMarketCap.

  • Joseph Gamp 12th May 2022, 16:30

    Market analyst predicts price of Bitcoin could drop further

    Crypto markets have been rocked by a $1trillion (£818.7bn) meltdown today.

    The huge crash wiped out the price of Bitcoin, Ethereum, BNB, XRP, Cardano and Terra Luna within the space of 24 hours.

    And one crypto analyst has warned the price of BTC could fall further thanks to the current market instability.

    Speaking to Forbes, Bitbank analyst Yuya Hasegawa said: "Bitcoin continued to slide and closed below $30,000 for the first time since last July, although the fall did not trigger a large sell off and the price is trying to recover $30,000 in the Thursday Tokyo session."

    He added: "The price of bitcoin, however, could still fall due to the UST situation and worsening technical sentiment, but if the US inflation continues to slow down, the macro environment will likely improve and the price will bottom out."

  • Joseph Gamp 12th May 2022, 16:00

    Brazil's XP to launch crypto trading platform despite huge market crash

    Brazil's digital broker XP Inc is set to launch a trading platform for digital assets in collaboration with Nasdaq, the company has today announced.

    New platform XTAGE will initially offer cryptocurrency trading when it is launched by the end of the second quarter of 2022.

    And the new feature will be available for XP's 3.5 million clients in Brazil through its existing trading app.

    XP's director of financial products Lucas Rabechini explained: "The creation of XTAGE represents a major milestone in advancing on the digital assets market and in our ability to offer investors increased access to the emerging ecosystem,"

    The news comes just as crypto markets were today rocked by a $1trillion (£818.7bn) meltdown.

    Today's crash wiped out the price of Bitcoin, Ethereum, BNB, XRP, Cardano and Terra Luna.

    Remember: Investing in cryptocurrency is a very risky business.

    You can be left with less money than you put in, and could even lose it all - even if you spend on what appears to be a safe bet.

  • Joseph Gamp 12th May 2022, 15:30

    WARNING: The five major risks of crypto investment

    Investing in cryptocurrency is a very risky business.

    You can be left with less money than you put in, and could even lose it all - even if you spend on what appears to be a safe bet.

    With this in mind, The Sun’s trusted consumer team have rounded-up the five major risks of investing in cryptocurrencies.

    These include:

    • Consumer protection: Some investments advertising high returns based on cryptoassets may not be subject to regulation beyond anti-money laundering requirements.
    • Price volatility: Significant price volatility in cryptoassets, combined with the inherent difficulties of valuing cryptoassets reliably, places consumers at a high risk of losses.
    • Product complexity: The complexity of some products and services relating to cryptoassets can make it hard for consumers to understand the risks. There is no guarantee that cryptoassets can be converted back into cash. Converting a cryptoasset back to cash depends on demand and supply existing in the market.
    • Charges and fees: Consumers should consider the impact of fees and charges on their investment which may be more than those for regulated investment products.
    • Marketing materials: Firms may overstate the returns of products or understate the risks involved.
  • Joseph Gamp 12th May 2022, 15:00

    Ether value drops 15 per cent in 24 hours

    Ether has also plummeted by nearly 15 per cent in the last 24 hours to $1,700 (£1,392.28).

    Today's crash saw Ether drop to its lowest since June 2021.

    And at the time of writing, the world's second-largest cryptocurrency was down almost 20 per cent in the past week, according to data from CoinGecko.

    You might not be able to access your investment if platforms go down and you could be left unable to convert crypto back into cash.

  • Joseph Gamp 12th May 2022, 14:30

    Bitcoin value slumps to lowest level since December 2020

    Bitcoin hit a low of around $25,401.05 (£20,776.79) today - its lowest level since December 28, 2020.

    In the past eight sessions, Bitcoin has lost almost a third of its value - equal to around $13,000 - and is down more than 45 per cent so far this year.

    Additionally, the cryptocurrency is nearly two-thirds down from its peak of ($69,000) £56,438.55 in November 2021.

    Investing in cryptocurrency is a very risky business.

    You can be left with less money than you put in, and could even lose it all - even if you spend on what appears to be a safe bet.

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