More than $200 billion erased from entire crypto market in a day

The price of bitcoin plunged below $26,000 on Thursday, hitting its lowest level in 16 months.

The price of bitcoin plunged as low as $25,401.29 on Thursday, according to Coin Metrics. That marks the first time the cryptocurrency has sunk below the $27,000 level since Dec. 26, 2020.

Bitcoin has since pared its losses and was last trading at $28,569.25, down 2.9%.

Ether, the second-biggest digital currency, tanked below $2,000 per coin.

Ether tanked to as low as $1,704.05 per coin. It’s the first time the token has fallen beneath the $2,000 mark since June 2021. Ether was last down 8.8% at a price of $1,937.88

U.S. inflation data out Wednesday showed prices for goods and services jumping 8.3% in April, higher than expected by analysts and close to the highest level in 40 years.

Stablecoins are like the bank accounts of the barely regulated crypto world. Digital currency investors often turn to them for safety in times of volatility in the markets

On Thursday, UST was trading at about 41 cents, still well below its intended $1 peg.

On Thursday, UST was trading at about 41 cents, still well below its intended $1 peg.