Market price

Why is crypto down today? Terra Luna Market Price

Bitcoin fell to its lowest crypto market value since January 2022 – a day that saw steep declines in major digital tokens

The cryptocurrency market is down 11.84% over the past 24 hours (1pm, May 12, 2022).

After gains and records in 2021, cryptocurrencies are going through a turbulent time with unpredictable price changes.

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  • Bitcoin (BTC) -9.27% ​​(£23,143.65)
  • Ethereum (ETH) -18.93% (£1,585.24)
  • Tether (USDT) +0.00% (£0.81)
  • BNB (BNB) -9.94% (£222.66)
  • XRP (XRP) -22.43% (£0.31)
  • Binance USD (BUSD) +2.28% (£0.83)
  • Gimbal (ADA) -25.14% (£0.38)
  • Solana (SOL) -27.71% (£35.84)
  • Dogecoin (DOGE) -23.14% (£0.0631)
  • Peas (DOT) -23.13% (£6.68)
  • Wrapped Bitcoin (WBTC) -9.67% (£23,011.76)
  • Avalanche (AVAX) -24.52% (£22.97)
  • SHIBA INU (SHIB) -25.00% (£0.00000870)
  • Earth (LUNA) -96.90% (£0.0430)

The recent decline is attributed to a loss of confidence in the crypto market amid economic pressures around the world caused by Russia’s invasion of Ukraine and post-Covid lockdowns.

This follows recent crashes caused by Tesla backtracking on accepting Bitcoin as payment for its products and China cracking down on initial coin offerings, blocking exchanges and warning against speculative trading.

Another blow came when China ordered a complete shutdown of Bitcoin mining in its Sichuan province and further instructed banks to stop supporting crypto transactions, as part of a latest wave of crypto restrictions.

Today, the country’s central bank, the People’s Bank of China, effectively banned digital coins after announcing that all cryptocurrency transactions were illegal.

The decision has already impacted the global crypto market.

Bitcoin wasn’t the only cryptocurrency to feel the effects of Tesla’s decision. (Photo: Shutterstock)

Why is the crypto market falling?

Uncertain economic prospects for many countries around the world have seeped into the deregulated digital currency universe, causing a lack of confidence in the market.

This follows China’s crackdown on crypto markets and Musk’s shock announcement when he appeared to be in favor of Tesla accepting Bitcoin as payment for its services.

The electric car company bought $1.5bn (£1.06bn) worth of Bitcoin shares, sending the price of the crypto market and Tesla skyrocketing, but these days are a distant memory for traders.

The billionaire entrepreneur said, “We are concerned about the increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of all fuels.”

Musk reiterated his belief that cryptocurrency has a “bright future” but “can’t come at a cost to the environment,” in his Twitter post.

Musk is a long-time cryptocurrency advocate, and Tesla’s decision was felt across the market as other digital tokens fell in price.

What is the price of Bitcoin and Ethereum?

The Bitcoin price was £23,143.65 after the last price drop (May 12), according to Coinbase.

The value of Ethereum is now £1,585.24.

Cryptocurrencies are considered a cheaper alternative to traditional banking methods of moving money as they are not regulated by the government or its banks.

Tesla’s decision, and announced by Musk, was seen by some as undermining the credibility of cryptos to become a viable means of payment against physical currencies.

What crypto prices are falling?

Bitcoin was not the only cryptocurrency to feel the initial effects, with most of the top 10 all seeing declines in value.

Dogecoin, initially set up as a joke in 2012 before seeing its shares soar, also fell while Solana saw its market price increase by more than 8%.

Musk’s influence cannot be underestimated because even though PayPal, Mastercard and Facebook supported cryptos, Tesla’s announcement still shook the market.