Bitcoin plunged as low as $25,401.29, but it has since cut its losses and was last trading at $28,569.25. Other cryptocurrencies also saw a loss, including Ether, the second-biggest digital currency, which went as low as $1,704.05 per coin. Coinbase, the crypto trading platform, also lost roughly half its value over the course of a week.
Treasury Secretary Janet Yellen, who addressed the volatility TerraUSD, a popular “stablecoin” billed as a safe place for crypto investors to store their cash, while testifying to the Senate earlier this month. Yellen stated, “A stablecoin known as TerraUSD experienced a run and had declined in value. I think that simply illustrates that this is a rapidly growing product and that there are risks to financial stability.”