Investors Cool to Crypto in Wake of Sell-Off

The crypto market is claiming the lives of many small investors as values ​​continue to slide following a severe downturn last week, Reuters reported on Tuesday (May 17).

The crypto market has crashed as investors pull money from riskier assets, due to concerns about inflation and high interest rates.

For example, 25-year-old Nigerian Nofe Isah lost all of her crypto savings after investing since January. The total loss amounted to approximately $5,000.

“I can’t believe I fell in love with crypto,” she told Reuters by phone. “I just try not to get depressed. Crypto took my money, fine. That shouldn’t bother me.

It came as tokens posted losses across the board, with Bitcoin falling to $25,401 on Thursday, the lowest since December 2020. But smaller tokens were also hit, with Ether the second most important token, down 15%, and Luna, a hyped digital coin, losing almost all its value.

Crypto has seen a flood of interest over the past few years. Robinhood, the brokerage platform with 23 million total customers, added to the wave of retail investment. About a quarter of its trading revenue in the last quarter came from crypto, Reuters reported.

However, after the turmoil lately, online forums have been full of stories like Isah’s, in which retail investors expressed their anguish.

See also: Tether drops 9% in $7 billion investor selloff

PYMNTS wrote that Tether, the world’s largest stablecoin, also fell victim, losing 9% of its value and more than $7 billion as investors plummeted as the crypto fallout continued.

Stablecoins are generally considered the safest bet against crypto because they are pegged to the US dollar or another fiat currency.

However, Tether and USDC both broke their $1 value and fell to 95 cents last week.

TerraUSD, or UST, has completely collapsed and the blockchain has been shut down as owners consider options. UST is known as Luna on the exchanges.

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