14/05/2022
WASHINGTON -- Investors in stocks, bonds and commodities are all on edge right now. But in the market for cryptocurrencies, unease has morphed into full-on panic, catching the attention of regulators in Washington tasked with maintaining financial stability.
What's happening: As of last Friday, the price of bitcoin had plunged almost 50% from its all-time high as traders - concerned about whether the Federal Reserve's bid to fight inflation could tip the economy into a recession - dumped riskier investments
But in recent days, the implosion of TerraUSD, a high-profile crypto experiment, has fueled a deeper anxiety. On Thursday, Tether - a popular "stablecoin" billed as a safe place for crypto investors to park their cash - broke its peg to the US dollar, unleashing further alarm.
WASHINGTON, D.C. — Stock, bond, and commodity investors are all nervous right now. However, in the cryptocurrency market, disquiet has turned into panic, drawing the attention of Washington regulators charged with safeguarding financial stability.
What's going on: Concerned that the Federal Reserve's attempt to combat inflation would throw the economy into a recession, speculators sold riskier investments as the price of bitcoin fell about 50% from its all-time high last Friday.
However, the recent collapse of TerraUSD, a high-profile crypto experiment, has heightened fears. Tether, a popular "stablecoin" advertised as a safe haven for crypto investors, shattered its peg to the US dollar on Thursday, causing even more concern.