Bitcoin Falls Below $30,000 Again, Loses Around 20% Of Its Value In May
Cryptocurrencies resumed their slide on Monday, giving up the gains they had eked out over the weekend, as regulators continued to circle. Bitcoin fell 5 percent to around $29,700 on Monday in Asian trade, sliding alongside stocks because of worries about high inflation and rising interest rates.
The world’s largest cryptocurrency has lost around one-fifth of its value so far this month, as the spectacular collapse of TerraUSD, a so-called stablecoin, has roiled crypto markets already falling amid broad selling of risky investments.
TerraUSD, which broke its 1:1 peg to the dollar last week and is currently trading near 14 cents, according to price site coingecko, has drawn particular attention to stablecoins and the important role they play in the cryptosystem. Some of that attention has come from financial regulators.
Bank of France Governor Francois Villeroy de Galhau told a conference on Monday that crypto assets could disrupt the international financial system if they were not regulated and made interoperable consistently and appropriately across jurisdictions. He pointed to stablecoins, which he said were somewhat misnamed, as among the sources of risk.
Speaking separately, Fabio Panetta, a member of the executive board of the European Central Bank, also said on Monday that stablecoins were vulnerable to runs.
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