Black week for cryptocurrencies, losses of 200 billion dollars. Terra Luna, near extinction

It is the first time in 16 months that the value of bitcoin, the most powerful cryptocurrency, falls by almost 9%, Euronews writes, citing Coin Metrics: $25,401 was worth this Thursday.

The price of Ether, the second most important digital currency, fell to $1,704 per coin. It is the first time the cryptocurrency has fallen below the $2,000 mark since June 2021. Ether last fell 8.8% to $1,937.

Also, stablecoins, i.e. stable coins that should retain their value, have lost ground. They are meant to support digital assets such as bitcoin.

Terra USD is about to collapse completely – it was worth 38 cents on Wednesday and is now estimated at 17 cents.

Terra USD's sister currency, Luna, has fallen by 97 percent, writes Euronews. If on Monday it was worth between 66 and 48 dollars, currently one cryptocurrency is quoted at 0.0004 dollars.

Economic analyst Dragoș Cabat says that over the past two years, cryptocurrencies have become an increasingly accepted financial instrument and that the events of the past week should not affect the market very much, in general.

"The impact is not major, because pension funds, big investment firms don't really hold cryptocurrencies in their portfolio as a major asset."

Marius Morra, CEO of Tokero, explains that the cryptocurrency market has fallen in the past and that the vision of those who invest should be directed to the future.

A similar moment occurred in March, but the market recovered after about three weeks, he says.

“Down times happen; the crypto market is a volatile market. For the most correct positioning, we always say that investments in cryptocurrencies are investments with a high degree of risk and everything should be treated as such. On the other hand, I, at least, am a great ambassador of the crypto area. We have to look, from my point of view, over a longer window of time, not necessarily at what is happening today, this week or this month."

During the periods when the value of cryptocurrencies goes up, investors "rush" to buy a virtual currency, and in the moments of decline, they avoid doing it, adds Marius Morra.

“Basically right now, when they should be acting, this theme is being induced and they are not doing it. In principle, it is good to buy when there are discounts. I, personally, can say that I made a few purchases during this period".

Currently, the BBC notes that the market for all cryptocurrencies in the world stands at $1.12 trillion.

The marginal cost of production represented by the electricity bill exceeded, as of this month, the price of a cryptocurrency. The virtual currency depreciated by more than 50% in the last year and by more than 60% compared to the maximum quotation it recorded on December 17, 2017, writes profit.ro.

Unlike individuals, large institutional producers can afford to negotiate contracts with electricity suppliers and realize a lower marginal cost of production.

Currently, this is, according to MarketWatch, 50-60% of the gross profit made from the mining activity.

According to a May survey by Elite Fixtures, the average cost of producing a bitcoin was $4,758.

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