In the last week. The big names bitcoin ethereum dipping to lows. We have not seen since 2020, and so far this year, bitcoin has lost more than 37 percent of its value. Now, in comparison, the s p 500 has dropped about 17 percent. Since just the beginning of the year, news correspondent, paul gerkey, joins us to explain so paul whats behind all this nicole, an avid investor, might just laugh at that question and think well, theres. A lot of things involved in this weve seen a lot of downturns like this in recent memory. I dont think that this is the end of crypto by any stretch of the imagination, but it is a massive correction and breaking this afternoon, u.s treasury secretary, janet yellen, is renewing calls for regulation within the crypto space. Saying this recent meltdown is a real life example of some of the risks that people are taking here and theres. A lot of investor uncertainty right now after a coin called luna, which at one point was one of the top 10 most valuable became almost worthless. This week and it dragged down the big names with it. Like you mentioned, bitcoin went below 26 000 overnight ethereum below 1750, and now some young investors that have been burned by crypto are picking up the pieces and reevaluating their futures. Oladapo odiye is a microbiology student with a wide range of interests. He works as a modeling manager and dabbles in photography for the last five years.

He has also invested in cryptocurrency, but for crypto ive been buying crypto selling and making some profits. He was saving up to get his masters degree when every speculatory investors nightmare came true. I i checked my wallet and seeing it dropped down drastically. I cant even send it out, because i dont know im its like im. Losing everything the massive sell off was prompted by an algorithmic stable coin, called terra usd losing its peg to the u.s dollar, which caused its sister coin luna to plummet in value. A stable coin is a cryptocurrency directly tied or pegged to another currency. Its supposed to stay exactly equal if something goes wrong and it doesnt traders can game the market, which is exactly what happened when tara dropped as low as 29 cents, olodapo owned 1 000 luna. When the bottom fell out, he watched his digital wallet empty from 8 000 to 20. 8 grand to 20 bucks luna lost more than 99 percent of its value. The project was founded in south korea in 2018, intended to free users from international transaction fees. Instead, its highlighting an inherent risk of unregulated markets, the chance you might lose everything its crypto, you cant, do anything. Some of olodapos fellow investors are feeling helpless, including one who put in money from selling her house. One of my friends. I think i am someone who even almost commits suicide. She took um some poisonous stuff and its almost killed out as for olodopo hes, going to keep investing in crypto, albeit with a heightened sense of scrutiny.

Ill just try and be more careful and whenever i see a fluctuation just set up immediately. Sadly, ive seen some other accounts just like his people threatening self harm in a lot of cryptocurrency forums after this massive downturn. But if youre looking for a silver lining, look no further than billionaire mark cuban hes, a big investor in the crypto and nfc nft space. And he thinks that this is a lot like the bubble. Right now, where it shed an enormous amount of value. But the strong survived and then sort of uh led the path of a new trail and what crypto will be in the future is not what it is now. The space has only existed for 12 or 13 years. At that point, the internet had been around for 20. yeah 8 000 out of 20, though paul ouch all right. Thank you for that joining us now to talk more about bitcoin financial, reporter sylvan lane from our partners at the hill, sylvan, always great to talk to you. Well, how are investors looking at crypto right now with whats happening, especially on wall street thats? Right nicole, you know, theres been a massive drawdown in the value of a lot of investment assets. You know we talked about the stock market, uh thats down a lot since the beginning of the year, but you know: cryptocurrency has always risen a little bit higher than the stock market and fallen a little bit lower in it its you know more volatile its a Lot newer, so a lot of people whove, you know, entered into the space over the past couple of years, and this you know massive explosion of cryptocurrency assets and values are now starting to see the other side of that.

For you know about two years, weve seen this pretty large increase in just the entire cryptocurrency world, but as interest rates get higher as the global economic outlook gets scarier a lot of these riskier assets are declining in value, as investors start to look for safer bets. You know so sylvan, you know paul gerke just mentioned that treasury secretary, janet yellen, calling for some new cryptocurrency regulation. What does that look like what type of regulation is needed here? So the main areas of concern for lawmakers is, you know, making sure that, especially with these stable coins, if they say that theyre pegged to something understanding how exactly its pegged to something, you know the reserves that they have, they want these cryptocurrency offerings to register. In the same way, as you know, stock offerings or other investment offerings and theyre, they want to get a better sense of how you know. Financial regulators can look at the overall market to see trends and other concerns going on, as opposed to just looking at. You know one coin that blew up or another coin thats rallying or a potential scam. They want a broader, bigger picture of whats going on all at the same time, yeah. Certainly lots of volatility, all right, sylvan lane. Thank you so much. We appreciate it. Thank you for watching click.