Bitcoin dropped to a 16-month low on Thursday, to $26,970, whilst over the past eight sessions the world’s largest cryptocurrency lost a third of its value, or $13,000.

This marks the first time Bitcoin has plummeted under the $27,000 mark since 30th December 2020, CNBC reports. In contrast, in November last year, Bitcoin soared to a record high of $69,000. According to traders, the recent fall echoes declines in tech stocks, with the Nasdaq down 6.4% this week.

Crypto markets extended losses amid concerns over soaring inflation and the collapse of TerraUSD.

The stablecoin’s demise highlighted the strain on crypto markets, Reuters reports. The third largest stablecoin broke its peg to the Dollar earlier this week, dropping to a low of 30 cents.

TerraUSD lost over 99% of its value over the last week and more than 96% in the past 24 hours, according to CoinMarketCap data. At the time of writing, the stablecoin is priced at around $0.6, down over 33% in the last seven days.

“The recent TerraUSD debacle has only added to the current market woes,” WazirX Trade Desk said in a note. “The crypto markets may continue to bleed as sell-offs continue and given the current market sentiment,” it added.

The crypto market is still assessing the fallout of TerraUSD’s collapse to determine whether any major firms or investors have been heavily impacted. “While this is a relatively small-cap cryptocurrency and its footprint is relatively contained, it still has some major implications for the sector, particularly if it spooks lawmakers or regulators already concerned about stablecoin collapse,” CoinDesk reported.

In addition, Ether, the world’s second largest cryptocurrency, fell more than 10% on Thursday to a low of $1,833, a level not seen since July last year.