Bitcoin (bitcoin) fell out of its long-term trading range on May 12 as continued selling pressure took the market down to 2020 levels.
Tether sees volatility as UST stays below $0.60
At the time of writing, the pair is hovering around $26,700 on Bitstamp, hitting its lowest level since December 28, 2020.
Weakness comes as a consequence of the collapse of the Terra stablecoin continue Rally around cryptocurrencies and beyond, with rumors that even professional funds are running into solvency issues due to losses Luna and UST.
“People are still dealing with this, but this is a Lehman moment for cryptocurrencies”
Heard a lot of funds could be insolvent due to Luna crash
— Frank Chaparro (@fintechfrank) May 12, 2022
Tether’s internal token, LUNA, has almost depreciated at the time of writing, trading at around $0.22. In early May, LUNA/USD was trading at $80.
UST, which Terra executives are currently focusing on reviving the dollar peg, traded at around $0.60, still well below $1 but more than double this week’s record low.
Nonetheless, this pressure is increasingly evident in cryptocurrencies, as the largest stablecoin Tether (USDT) itself is starting to give worrisome signs that it is replicating the downfall of UST.
At the time of writing, USDT/USD is trading below $0.99 on major exchanges.
Commenting on the stability of the system, Tether CTO Paolo Ardoino said that USDT withdrawals are working as normal.
“>300M cashed in the last 24 hours without a drop of sweat,” section tweet read.
Data from on-chain analytics firms Encrypted Quantum It added that major exchanges witnessed record stablecoin outflows.
$1.22 billion liquidated in 24 hours
Regarding the loss of the macro range low created in January 2021, analysts remain willing to view current levels as a potential opportunity.
“No matter how much you lose in a macro downtrend, you’ll get a multiple return in a macro uptrend. All you have to do is pay attention to the market when it’s extremely bearish,” popular trader Rekt Capital debate.
A May 11 tweet highlighted the macro range.
if #BTC Losing this green area as support…
— Rekt Capital (@rektcapital) May 11, 2022
The extent of the losses is reflected in market clearing.Data from on-chain monitoring resources coin glass It was shown that for Bitcoin and altcoins, they combined exceeded $1.2 billion in the 24 hours at the time of writing.
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