Bitcoin Price Rebounds After Falling Below $26,000

Bitcoin plunged, then rebounded, and the world’s largest stablecoin, tether, briefly fell from its $1 peg, adding to fears of further turmoil in the cryptocurrency market.

Cryptocurrencies have been hit by two forces this week. On the one hand, fears that inflation will require aggressive central bank tightening have undermined the desire to hold perceived riskier assets. On the other hand, the decoupling of TerraUSD, a stablecoin whose value was pegged to $1, caused repercussions for digital assets.