Shocking! Tether Plummets and the Latest Top 10 Most Valuable Virtual Currencies Ranking Revealed

Shocking! Tether Plummets and Cardano price INRthe Latest Top 10 Most Valuable Virtual Currencies Ranking Revealed

In the volatile world of virtual currencies, a recent development has sent shockwaves through the market. The virtual currency market was hit by a major storm on October 26 (Beijing time), when virtual currencies tumbled across the board. The trigger for this flash crash is believed to be the U.S. federal government's investigation into Tether, the issuer of the stablecoin Tether (USDT), which is pegged to the U.S. dollar.

As per CMC data, Tether currently has a market capitalization of approximately $120 billion, making it the world's third-largest virtual currency by market cap and the most traded one daily. Hilary Allen, a law professor at an American university who studies digital assets, stated in an interview, "For the virtual currency industry, I think Tether is too important. If Tether were to go to zero in the future, it would have a catastrophic impact on the virtual currency economy."

On that fateful day, Bitcoin suffered a massive sell-off, with its price dropping rapidly to a low of $65,700 before slightly rebounding. It initially plunged by over $2,000, breaking below the $66,000 integer mark and ending up down more than 1% by the time of reporting. The fall of Bitcoin, which lost a key integer level, led to a domino effect on other virtual currencies in the market. Ethereum dropped by over 4% in 24 hours, and Dogecoin tumbled by more than 6%.

The Coingecko data showed that the total market capitalization of virtual currencies dropped to $2.27 trillion, a nearly 3% decline in 24 hours, resulting in the evaporation of over $68 billion (approximately RMB 484.2 billion) in market value. In the sharp decline, according to Coinglass data, nearly 140,000 people in the virtual currency market were liquidated in the past 24 hours, with a total liquidation amount of $391 million (about RMB 2.78 billion). Among them, long positions worth $321 million were liquidated, and short positions worth $69.58 million were liquidated.

Looking at Tether's history, it has faced challenges in the past. In 2022, the collapse of FTX and the sharp decline of Terra Luna triggered a large-scale redemption wave. USDT once depreciated to $0.95, and Tether handled $10 billion in redemptions in just a few days - a huge amount that even traditional fiat currency banks would struggle to bear. However, as the market value stabilized at $65 billion, the redemption wave soon subsided.

Despite the poor performance of Bitcoin and the losses suffered by competitors during the "crypto winter," Tether remained unscathed and even became more profitable. One of the key factors was the rising interest rates. In the first quarter of 2022, the 90-day U.S. Treasury bill yield was 0.52%, and it rose to 4.85% a year later. Higher borrowing costs reduced the number of Bitcoin buyers, thereby suppressing trading volume. But for the stablecoin business, higher interest rates provided greater profit opportunities.

Now, let's turn our attention to the top 10 most valuable virtual currencies. Although the specific latest ranking is not provided in the current information, we know that Bitcoin is usually at the top, given its status as the pioneer and most well - known virtual currency. Ethereum also consistently ranks highly due to its smart contract capabilities and large developer community. Tether, as mentioned earlier, is in the third position by market cap.

For those interested in the virtual currency market, it's crucial to conduct their own research (DYOR). The market is highly volatile and subject to various factors such as regulatory actions, technological developments, and macro - economic trends. This Tether - related flash crash is a stark reminder of the risks associated with virtual currencies.

Investors need to be aware of the potential for sudden price drops and the impact of regulatory investigations. A significant event like the possible downfall of Tether could have far - reaching consequences for the entire virtual currency ecosystem. It's also important to keep an eye on the top 10 virtual currencies, as their performance often reflects the overall health of the market.

In conclusion, the plummet of Tether and the subsequent market crash have highlighted the fragility and interconnectedness of the virtual currency market. As the situation continues to evolve, the top 10 virtual currencies' rankings may also change. Market participants should stay vigilant and make informed decisions based on a comprehensive understanding of the market dynamics.

Frequently Asked Questions (FAQ)

Q: Why is Tether so important in the virtual currency market?A: Tether is important because it is the issuer of USDT, the third - largest virtual currency by market cap and the most traded one daily. It is also a stablecoin pegged to the U.S. dollar, which is widely used as a trading pair for almost all cryptocurrencies. If Tether were to fail, it would have a catastrophic impact on the virtual currency economy.

Q: What caused the virtual currency flash crash on October 26?A: The flash crash is believed to be due to the U.S. federal government's investigation into Tether. The uncertainty surrounding Tether led to a massive sell - off, especially of Bitcoin, which then triggered a chain reaction in the market.

Q: How should investors deal with the volatility in the virtual currency market?A: Investors should conduct their own research (DYOR) and be aware of the risks. They should also keep an eye on regulatory actions, technological developments, and macro - economic trends. Given the high volatility, it's advisable to invest only what one can afford to lose.

Q: Can the virtual currency market recover from this Tether - related crash?A: It's possible for the market to recover. However, it depends on various factors such as how the Tether investigation unfolds, market sentiment, and broader economic conditions. Historically, the virtual currency market has shown resilience, but there are no guarantees.

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