A massive sell-off in cryptocurrencies wiped over $200 billion of wealth from the market in just 24 hours, according to estimates from price-tracking website CoinMarketCap.
The broad plunge in the crypto complex, driven by the collapse of the TerraUSD stablecoin, hit major tokens hard.
Bitcoin plunged by as much as 10 per cent in the last day to its lowest level since December 2020, while Ethereum dropped as much as 16 per cent.
The carnage showed signs of spreading further on Thursday as crypto-related stocks in Asia also cratered. Hong Kong-listed fintech firm BC Technology Group Ltd closed down 6.7 per cent. Japan’s Monex Group Inc. - which owns the TradeStation and Coincheck marketplaces - ended the day down 10 per cent.
As central banks across the world move to aggressively tighten monetary policy to fight inflation, digital tokens have faced selling pressure amid a broader flight from risk assets. S&P 500 futures lost 0.8 per cent on Thursday, tracking losses in the benchmark MSCI Asia Pacific Index.
Investors in the crypto space are no stranger to wild swings in the market, however, and Bitcoin and Ethereum pared losses quickly to trade down 4.2 per cent and 9 per cent, respectively, as of 4.45pm Hong Kong time.