Bitcoin continued to lose value on Thursday, taking other crypto-assets with it as LUNA Fatally Crashes To $0. BTC is currently trading at $28,235, having fallen below $26,700 earlier today after losing the June $28,000 support. Before recovering to $1,952, Ethereum had fallen below $1,800.
According to Coinglass, the total number of liquidations in the last 24 hours totaled $1.28 billion, with 411,467 traders targeted. In the previous day, the global crypto market cap has dropped 15.33% to $1.19 trillion.
More negative movement could be on the way, according to crypto researcher Ali Martinez, as BTC has breached a historic trendline, which could see prices drop by 40.59% to $20,000.
The drop on Thursday, on the other hand, appears to have generated a greater number of purchases, with the top eight exchanges by traded volume showing a considerable rate of buying on their order books. The weighted percentage of purchases across all crypto exchanges is currently 64.63 %, with BitMEX leading with 83.7 %, OKX with 75.35 %, and Deribit with 72.7 %.
The sell-off spread to other crypto sectors, with the De-Fi lending sector’s liquidation volume hitting $130 million in the last day, a new high for the year. AAVE has lost $64.3 million, Venus has lost $38.19 million, and Compound has lost $13.02 million.
The FUD around stablecoins, particularly with Terra’s UST LUNA de-pegging off of the dollar this week
“There is pressure to get out of stablecoins right now because they are worried about the risk illustrated in UST. This event is probably the most destructive in the history of crypto with probably about $30B just wiped out” Frank Chapparo, news director at The Block told CNBC’s “The Exchange.’
UST, which first de-pegged emerged last weekend after the stablecoin plunged below $0.98 prompting emergency action by LFG aimed at sustaining it at dollar value, seems to have only worsened. The stablecoin dropped as low as $0.225 on Wednesday, although it has now recuperated to $0.48. LUNA, the native token for Terra which tapped a high of $120 in early April also took a hit, plunging over 98% this week alone to sit at $0.02 as of writing.
That said, the stablecoin FUD continues to spread, sending shockwaves across crypto assets as traders dump their holdings for safety nets fearing that UST’s plight could befall other stablecoins. Already, Justin Sun has expressed fears of TRX becoming the next target, prompting him to roll out a plan to cushion the recently launched USDD stablecoin that mimics UST.
“Funding rate of shorting TRX on Binance is over 100% APR. It seems TRX is the next target after LUNA. TRON DAO Reserve will deploy 2 billion USD to fight them.” Sun Tweeted Wednesday.
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