A crypto scam linked to DeFi platform Terablock has caused over $300 million in losses to more than 1,200 investors
The cryptocurrency market experienced a downturn over the past 24 hours, with the total market capitalization falling by $18 billion. This drop came after a period of volatility that saw the market cap swing dramatically by $100 billion before settling at its current lower position.
The total crypto market cap has declined from $4.03 trillion to $3.91 trillion, representing a reversal of the gains made during intraday trading. Market analysts point to two main factors behind this decline: investor profit-taking and growing concerns about the upcoming US Consumer Price Index (CPI) report.
Many investors chose to lock in profits after the recent market upswing, contributing to the overall decline. This profit-taking behavior is common in volatile markets and often leads to short-term price corrections.
The approaching US CPI report has created an atmosphere of caution among crypto traders. The report could potentially indicate rising inflationary pressures, which might influence cryptocurrency prices in the coming days.
Bitcoin, the market’s leading cryptocurrency, is currently holding at $118,933. The Relative Strength Index (RSI) for Bitcoin still shows bullish momentum, suggesting potential for recovery despite the broader market decline.
However, Bitcoin faces a critical threshold at $117,261. A drop below this level could signal weakness in the market leader and potentially trigger further selling pressure across the entire crypto space.
Among altcoins, Fartcoin has been the hardest hit, recording a 19% drop to $0.87. Technical analysis suggests that a bounce above $0.92 could reverse Fartcoin’s current downtrend, though bearish conditions continue to dominate its price action.
The market downturn coincides with reports of a major crypto scam linked to DeFi platform Terablock. Over 1,200 investors in Mexico and the United States have lost more than $300 million through this scheme, which promised high returns on USDC investments.
Terablock abruptly halted its operations in August 2021, citing an unexplained “technical shutdown.” The fallout from this scam continues to impact investor confidence in DeFi platforms and may be contributing to the current market weakness.
In other news affecting market sentiment, Do Kwon, founder of Terraform Labs, has agreed to plead guilty to multiple felony charges. These charges include fraud and money laundering, with Kwon facing a maximum sentence of 100 years in prison.
The charges against Kwon stem from his role in misleading investors during the collapse of Terra Luna and TerraUSD in 2022. This collapse wiped out approximately $40 billion in market value and remains one of the largest failures in cryptocurrency history.
Investors are advised to watch the upcoming CPI data closely, as it could provide insights into potential inflationary pressures. Such pressures might impact Federal Reserve policy decisions, which often have ripple effects throughout cryptocurrency markets.
The current market conditions highlight the ongoing volatility in the crypto space. Short-term price movements remain unpredictable as investors react to both economic data and developments within the crypto industry itself.
The total crypto market cap now stands at $3.91 trillion, down from its recent high of $4.03 trillion. This represents a decline of approximately 3% over the past 24 hours of trading.
