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.

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.

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Harold

CoinCu News