BITCOIN STEADY AT $30K, TERRAUSD FALLS BELOW $0.1

Wed 18 May 2022:

On Wednesday, the price of Bitcoin remained stable at over $30,000, but the stable coin TerraUSD, also known as UST, plummeted below $0.1.

Bitcoin, the world’s most valuable cryptocurrency by market capitalization, was trading at $30,029 at 10:05 GMT, down 1.8 percent on the day.

Ethereum, the world’s largest altcoin, was trading at roughly $2,040 at the time, representing a daily loss of 2.2 percent.

The crypto market has lost nearly half of its value in the last six weeks, with a market cap of $1.28 trillion.

The market capitalization is down from $2.19 trillion on April 4, when the US Federal Reserve raised interest rates by 50 basis points and warned that more rate hikes are coming in June and July.

The Fed’s monetary tightening has spooked investors since there will be less liquidity in the markets, which caused turmoil in stock exchanges from the US to Europe.

The crypto market is also struggling with inner hurdles, especially with the controversial stable coin UST plummeting since last week.

Initially designed to be pegged one-to-one with the US dollar, the price of the UST continued its decline and fell below $0.1 at 0630GMT.

Luna Foundation Guard, the organization behind UST, sold at least $2.1 billion worth of Bitcoin in the past 10 days to support the price of UST, according to released figures on Monday.

Many crypto investors partially blame the organization for selling Bitcoin and causing a decline in its price to bring the value of UST back to $1.

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