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.
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.
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