Bitcoin price bounces at $29,700
The first trip under the $30,000 mark since July 2021, overnight BTC price performance came amid both declining stock markets and fresh trouble for Terra’s United States dollar stablecoin, TerraUSD (UST).
Initial liquidity steps to mitigate the impact of the threat proved insufficient, however, and UST subsequently fell to lows of $0.67, according to data from CoinMarketCap.
At the same time, BTC/UST on major exchange Binance began behaving erratically, reaching highs of more than $42,000 while other Bitcoin dollar markets struggled to preserve $30,000.
Rumors of a full meltdown at Terra spread rapidly on social media. Nonetheless, the firm’s vocal co-founder, Do Kwon, remained calm after announcing the mass BTC liquidity injection.
Kwon retweeted a summary of the situation from Jose Macedo, founding partner at Delphi Ventures, who argued that Terra’s contingency measures would ultimately lead to a greater decentralization of the crypto industry’s largest decentralized USD stablecoin.
Data from on-chain monitoring resource BitInfoCharts, meanwhile, confirmed the moves, the wallet balance of Terra nonprofit, the Luna Foundation Guard (LFG), going from 70,000 BTC, or $2.23 billion, to 0 BTC.
$35,000 on the table
BTC/USD nonetheless managed to recover from its own collapse to trade at near $32,000 at the time of writing on May 10.
“I don’t know how deep the markets are going to correct, as an additional outlier of the LUNA UST peg is playing it’s part of the drop,” Cointelegraph contributor Michaël van de Poppe reacted overnight:
“All I know, is that the UST peg is a temporary shock and I’m assuming we’ll trade around $35K in the next 24-48 hours for Bitcoin.”
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
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- ^ declining stock markets (cointelegraph.com)
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- ^ pic.twitter.com/Xn7qcy4VMZ (t.co)
- ^ May 10, 2022 (twitter.com)
- ^ wrote (twitter.com)
- ^ confirmed (bitinfocharts.com)
- ^ suggested (twitter.com)
- ^ Pro traders adopt a hands-off approach as Bitcoin price explores new lows (cointelegraph.com)
- ^ confirming (twitter.com)
- ^ reacted (twitter.com)
- ^ LUNA (cointelegraph.com)
- ^ revealed (twitter.com)