Cryptocurrency prices are down amid a slew of grim economic news.
On Monday morning, the price of bitcoin fell below $30,000 for the first time since July 20.
(Read and how they work.)
As of Tuesday afternoon, terraUSD was valued at approximately 81 cents per coin.
Cryptocurrency traders use stablecoins like terra as a go-between for other, more volatile cryptocurrencies, like bitcoin.
Terra’s value isn’t supposed to fluctuate or dip below $1.
In response to the price drop, Terra’s corporate parentcalled on its own cryptocurrency reservesto capitalize its token.
Stablecoins are an integral part of the overall crypto market.
But headwinds are being seen throughout the financial system.
In March,the inflation rate hit 8.5%, the highest it’s been in 40 years.
In response,the Fed raised interest ratesby 0.5% with the hope of stabilizing the economy.
