The cryptocurrency market is experiencing an unprecedented downturn

The cryptocurrency market has tumbled this week, with Bitcoin hovering between $28,000 and $30,000 in the last two days – less than half of the all-time high reached in November – and Ethere a little over $2,000, which it is also less than half the value of its November peak. A significant portion of the blame is being blamed on a cryptocurrency called TerraUSD.

TerraUSD is one of the largest of what are called ‘stablecoins’, meaning it should hold a value close to that of a fiat currency – in this case, the US dollar. Cryptocurrency investors see stablecoins as a sort of checkpoint in the cryptocurrency game, “safe” places to store their investments when they are not buying into more volatile currencies. And yet, this week the value of TerraUSD has dropped to 30 cents at its lowest level, and is now still just above 80 cents. As FastCompany pointed out, TerraUSD “typically fluctuates by only thousandths of a percent.”

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