The (BTC), price fell below $27,000 Thursday, the lowest in over a year. This was due to the fall of money supply and TerraUSD’s downfall.

Thursday’s drop in the number one cryptocurrency to $25.401 was the largest since December 2020.

Bitcoin’s drop was followed by (ETH), which declined to $1,789. It was almost a year since the 2nd-largest cryptocurrency dropped below $2,000 for the first time.

After a steep drop in stock markets due to the worsening economic outlook, and the rising interest rate, the cryptocurrency market experienced a sell-off.

On Wednesday, the latest data showed prices for goods and service increased 8.3% in April. This is just below their 40-year peak.

The collapse of the unpopular stablecoin protocol (UST) was another factor that scared investors and triggered crypto sales. Investors were forced to sell their investments in decentralized finance when UST (a stablecoin that was meant to keep its $1 value) crashed Wednesday below 30cs.

The world’s largest stablecoin, (USDT), also broke its $1 peg. Like UST, Tether was designed to reflect the US dollar’s value, however, the stablecoin fell to 94.10cs during early trading Thursday.

Tether, like all stablecoins in the crypto market, is an important asset. It was developed to offer investors safe cash storage while making volatile bets.

By Senad Karaahmetovic