Bitcoin Drops to Lowest in 16 Months

Bitcoin dropped below $26,000 for the first time in 16 months on Thursday amid the TerraUSD meltdown this week.

Bitcoin, the world’s largest cryptocurrency, has dropped around 2% to as low as $25,401, its lowest since January 2021.

Bitcoin has lost one-third of its value or roughly $13,000 in the past eight sessions.

However, Bitcoin has slightly reduced its losses to $28,409.99 or 4.8% in the last 24 hours.

TerraUSD fell below the 1:1 peg this week, worsening the already turbulent cryptocurrency markets. 

According to CoinGecko, TerraUSD fell as low as 38 cents on Wednesday.

TerraUSD is a decentralized stablecoin–a digital token pegged to the US Dollar.

Besides TerraUSD, stablecoins backed by reserves were showing stress signs on Thursday. 

Ether, the second-largest cryptocurrency, also dropped to $1,700 or about 15% on Thursday, its lowest since June 2021. 

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