Top Tokens Continue To Bleed, Market Sentiment Remains In 'Extreme Fear Zone'

The cryptocurrency market sentiment continued to remain in the "extreme fear zone" as sellers dominated the market, considering the top tokens trading below expectations Thursday. The recent TerraUSD debacle has only added to the current market woes.

The global market cap was down 16.74 percent at $1.13trillion, as of 3.21 a.m. ET, CoinMarketCap data showed. Bitcoin was down 12.35 percent at $26,562. Ethereum, too, fell 21.24 percent to $1795.

Barring a slight upward tick in USD Coin and Binance USD, all other top 10 tokens were trading in the red. Meme cryptos Shiba Inu and Dogecoin plunged too.

WazirX's trade desk said, "BTC fell to its lowest point since January, last year. The sellers dominated the market as the general market sentiment continued to remain in the extreme fear zone. The recent TerraUSD debacle has only added to the current market woes."

"The next support for BTC can be expected at the $24,000 level. The crypto markets may continue to bleed as sell-offs continue and given the current market sentiment," the Indian exchange told International Business Times.

Terra's two tokens LUNA and UST have bled heavily. While UST traded around 26 cents Wednesday and gained again to $0.55, LUNA lost 96.35 percent to trade at $0.2066 Thursday.

"The debacle began when Terra’s algorithmic-based stable coin TerraUSD(UST), which is pegged against the dollar, fell sharply to almost $0.6. With that, Binance, one of the top global crypto exchanges, temporarily stopped the withdrawal of UST and LUNA. This led to a cascading effect on the prices of LUNA, spiraling it out of control," WazirX trade desk told International Business Times.

Meanwhile, confidence in crypto continues to grow in the UK as the nation reinforces its plans to support crypto adoption while implementing guardrails to protect users, enabling more trust and transparency for consumers and innovators alike.

On the development, CoinDCX said, "Such conducive regulatory environments not only serve to protect users but ensure the growth of nascent industries and emerging technologies such as Web3, injecting greater credibility and bolstering the future of finance."

The crypto market is extremely volatile and experts recommend investors not make decisions based on the sudden shift in prices.