Crypto markets fell around 16% overnight as Bitcoin, at the time of writing, fell below $28k, levels last seen in 2020. Markets across the board have been in meltdown, with investments in the likes of Peloton, Robinhood and Coinbase falling 91%, 89% and 77% respectively. 

In the US, the S&P 500 has lost over 4.5% so far this week. The Nasdaq Composite fell to its lowest level since November 2020, falling by more than 3%.

Tether dropped to 97 cents, losing its parity with the U.S. dollar. On Coinbase, it fell as low as 96 cents. Traders sold USDT for U.S. dollars amid poor sentiment for stablecoins in crypto communities. 

Martha Reyes, Head of Research at BEQUANT, the digital asset prime brokerage and exchange commented: 

“The markets are in meltdown but this may present an opportunity for institutional players to start building positions and push stablecoin regulation to provide more confidence.”

“While we can't call the bottom and correlations among asset classes remain elevated, Bitcoin has survived corrections of 70-80% in the past. This  may be an opportunity for institutions to build positions at better levels.”

“The uncertainty around stablecoins is a concern and could lead to another flush out but we may finally get the much needed regulatory framework that could entice institutions in. Regulators tend to be reactive, so this may be the catalyst for greater stablecoin regulation.”