Serious ‘Ripple’ Warning After Massive $400 Billion Crypto Crash Suddenly Plunges Bitcoin, Ethereum, BNB, XRP, Solana, Cardano, Terra’s Luna And Avalanche Into Free Fall


, ethereum and other major cryptocurrencies have suddenly crashed, wiping $400 billion from the combined crypto market since Friday.

Subscribe now to Forbes’ CryptoAsset & Blockchain Advisor and successfully navigate the volatile bitcoin and crypto market

The bitcoin price has fallen dramatically toward $30,000 per bitcoin, down 20% from over $40,000 last week. Ethereum and its biggest rivals BNB

, solana, cardano and avalanche had fallen even more steeply, each losing between 15% and 20%. Ripple’s XRP

is also down around 15%.

The brutal bitcoin and crypto price crash was triggered first by the U.S. Federal Reserve sharply hiking interest rates last week, also crashing stock markets, and then exacerbated by the fast-growing algorithmic stablecoin TerraUSD (UST) struggling to maintain its $1 peg as its support cryptocurrency luna leads market lower with a blistering 30% plummet.

Want to stay ahead of the market and understand the latest crypto news? Sign up now for the free CryptoCodexA daily newsletter for crypto investors and the crypto-curious

“In highly volatile markets, all asset classes will move in lockstep,” Michael Safai, managing partner at crypto trading firm Dexterity Capital, said in emailed comments, pointing to soaring inflation and fears over more Fed monetary tightening worrying investors.

Safai warned that if the bitcoin price crashes under $30,000 fears over “ripple effects” will spread.

“Enthusiasm for what’s being built in crypto hasn’t faded, but if we go further below $30,000, the market will naturally be worried about the ripple effects, such as miners turning their machines off as they move out of profitability. $25,000 isn’t a worst-case scenario here, and the market may be bracing itself for that reality.”

Other bitcoin and crypto market watchers have also warned over sell-off “momentum” building.

“Investors exiting positions may be adding some momentum to the protracted sell-off that we’ve witnessed over the past few days,” analysts at Bitfinex wrote in an emailed note.

That momentum was partly driven by Terra’s algorithmic stablecoin UST slipping from its dollar peg over the weekend, falling further today even after Do Kwon, the founder of the project’s developer Terra Labs, promised to “deploy more capital” to help maintain the UST price.

Sign up now for CryptoCodex—A free, daily newsletter for the crypto-curious

MORE FROM FORBES‘A De Facto Ban’-Serious Bitcoin Warning Issued As Price Crash Hits Ethereum, BNB, XRP, Luna, Solana, Cardano And Avalanche

However, some have pointed to this week’s U.S. inflation data, due Wednesday, as potentially offering some relief to both crypto and stock markets.

“All is not lost for bitcoin yet,” Yuya Hasegawa, crypto market analyst at Bitbank, wrote in emailed comments.

“April’s U.S. consumer price index (CPI), which will be the main event for the week, could be a turning point for the price. If the CPI shows no sign of slowing down, it will add to the fear of faster monetary tightening, but other inflation metrics are starting to slow down and the April CPI could follow suit, which in turn will likely alleviate the market’s concern and help recover its risk sentiment.”

The president of El Salvador, who has spearheaded the country’s adoption and accumulation of bitcoin over the last year, remains bullish on bitcoin, announcing he’s “bought the dip” by adding 500 bitcoins at an average price of around $30,744 to El Salvador’s stash.

You May Also Like

Archie’s American accent! Prince Harry and Meghan Markle’s son is heard making adorable comment

Prince Harry and Meghan Markle’s son Archie has been heard making an…

Vigil held to remember 13-year-old Prince Holland

JACKSONVILLE, Fla. — Family and members of the community gathered Wednesday night…

2nd teen arrested in parking lot shootout with Aurora police

DENVER — A second teenager was arrested in connection with a shootout…

Sub-zero Britain: ‘Troll of Trondheim’ sends temperatures plunging to -6C overnight

The UK has woken up to Arctic conditions this morning as temperatures…

Hassan Chokr Mooned Judge During Hearing

Hassan Chokr during Tuesday’s hearing at the Wayne County Circuit Court A…

Walmart CEO warns of store closings if thefts keep rising

Walmart isn’t the only company facing an uptick in shoplifting and large,…

Lawmakers promote act to address border patrol suicides

() — Two Texas lawmakers came together across the aisle to promote…

Huddersfield Town's new unknown quantity status crucial to bridging transfer gap

The Terriers were almost wilfully unambitious on the ball in some of…

New military lounge opens at Jacksonville International Airport

JACKSONVILLE, Fla. – The Jacksonville Aviation Authority on Wednesday officially opened a…

Chicago Cop Accused of Peeing into Ice Machine at Florida Bar

An off-duty Chicago police officer was arrested Monday after he allegedly urinated…

Violent ‘bank jugging’ robberies on the rise in California

Vivian Chow, Nexstar Media Wire Posted: Dec 7, 2022 / 05:05 PM…

Police to reveal identity of Philly’s slain ‘Boy in the Box’

Nearly 66 years after the battered body of a young boy was…