On May 10, Bitcoin (BTC) went below $30,000 for the first time in ten months as turbulence at Blockchain technology Terra continued. A frantic effort to rescue UST continues as Bitcoin weathers the storm to receive a $35,000 target next.

Data from CoinCu showed BTC/USDT plumbing lows of $29,747 on Binance. The first trip below $30,000 since July 2021, BTC’s overnight price-performance came amid both falling stock markets and fresh issues for Terra’s US-dollar stablecoin, TerraUSD (UST).

As CoinCu continues to report, Terra (LUNA) saw an attack involving a sell-off this week, culminating in Terra using its giant reserves of 750 million BTC to support its USD peg.

However, initial liquidity steps to alleviate the threat proved ineffective, and the UST plummeted to $0.61, according to CoinMarketCap data.

Meanwhile, BTC/UST on major exchange Binance began acting erratically, reaching highs of over $43,000 while other Bitcoin dollar exchanges battled to keep $30,000.

Rumors of a total meltdown at Terra quickly emerged on social media. Nonetheless, Do Kwon, the firm’s outspoken co-founder, remained calm after announcing the massive BTC liquidity infusion.

Jose Macedo, who suggested that Terra’s contingency measures would eventually lead to a higher decentralization of the crypto industry’s largest decentralized USD stablecoin, has retweeted:

Meanwhile, data from on-chain monitoring site BitInfoCharts verified the transactions, with Terra nonprofit, the Luna Foundation Guard (LFG), wallet balance dropping from 70,000 BTC, or $2.23 billion, to 0 BTC.

LFG suggested that not all the previously owned BTC had been sold, and pledged to update the community.

BTC/USD nonetheless managed to recover from its own collapse to trade at near $32,000 at the time of writing on May 10.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Harold

CoinCu News

Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

DeFi

BTC/UST price hits $43,000 as Terra empties $2.2B BTC bag

On May 10, Bitcoin (BTC) went below $30,000 for the first time in ten months as turbulence at Blockchain technology Terra continued. A frantic effort to rescue UST continues as Bitcoin weathers the storm to receive a $35,000 target next.

Data from CoinCu showed BTC/USDT plumbing lows of $29,747 on Binance. The first trip below $30,000 since July 2021, BTC’s overnight price-performance came amid both falling stock markets and fresh issues for Terra’s US-dollar stablecoin, TerraUSD (UST).

As CoinCu continues to report, Terra (LUNA) saw an attack involving a sell-off this week, culminating in Terra using its giant reserves of 750 million BTC to support its USD peg.

However, initial liquidity steps to alleviate the threat proved ineffective, and the UST plummeted to $0.61, according to CoinMarketCap data.

Meanwhile, BTC/UST on major exchange Binance began acting erratically, reaching highs of over $43,000 while other Bitcoin dollar exchanges battled to keep $30,000.

Which has caused a massive surge in BTCUST (Not Bitcoin valued in dollars, but valued in the UST stablecoin). pic.twitter.com/Xn7qcy4VMZ

— Blockchain Backer (@BCBacker) May 10, 2022

Rumors of a total meltdown at Terra quickly emerged on social media. Nonetheless, Do Kwon, the firm’s outspoken co-founder, remained calm after announcing the massive BTC liquidity infusion.

Jose Macedo, who suggested that Terra’s contingency measures would eventually lead to a higher decentralization of the crypto industry’s largest decentralized USD stablecoin, has retweeted:

Haters will criticise this for centralisation and they're right, for now. @LFG_Reserve made $UST more robust, but also temporarily more centralised

Fully decentralised reserve mechanism described by @jump_ is being worked on by the @astroport_fi team as we speak https://t.co/0REaVl47Ng

— José Maria Macedo (@ZeMariaMacedo) May 9, 2022

Meanwhile, data from on-chain monitoring site BitInfoCharts verified the transactions, with Terra nonprofit, the Luna Foundation Guard (LFG), wallet balance dropping from 70,000 BTC, or $2.23 billion, to 0 BTC.

LFG suggested that not all the previously owned BTC had been sold, and pledged to update the community.

BTC/USD nonetheless managed to recover from its own collapse to trade at near $32,000 at the time of writing on May 10.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Harold

CoinCu News

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