The price of bitcoin dropped to around $25,420 this week. It steadied around $30,000 Friday, but that’s still less than half the price bitcoin fetched last November. Some bitcoin proponents have said the digital currency could protect its holders against inflation and act as a hedge against a decline in the stock market.

Inflation at the consumer level rose 8.3% in April compared to a year ago. Investors are dumping risky assets, including stocks and crypto. The S&P 500 is down more than 15% this year. Bitcoin has dropped about 37% year to date.

Dogecoin, a cryptocurrency favored by Tesla CEO Elon Musk, has lost about half its value. Stablecoins have been viewed as a safe harbor among cryptocurrencies. Ethereum has dropped 44% and dogecoin is down about half a percent. Tesla CEO Musk puts Twitter buy 'on hold,' casting doubt on $44B deal.

The value of many stablecoins is pegged to a government-backed currency, such as the U.S. dollar. But this week one of the more widely used stablecoins, Terra, experienced the cryptocurrency equivalent of a run on the bank. Terra is a stablecoin in a cryptocurrency ecosystem known as Terra Luna.
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