Terra’s ‘rescue plan’ remains in place as LUNA dips below $5, Bitcoin surges to ‘$138,000’ in UST

Panic appeared to appear in the crypto markets overnight on May 11 as blockchain protocol Terra failed to stabilize its bloody crypto assets.

data from Cointelegraph Market Pro and Transaction view Shows the company’s internal tokens, Luna And stablecoin TerraUSD (UST) saw new major losses on the day.

Bitcoin’s Suspicious New “All-Time High”

In some people’s opinion “coordinated“To destroy the Terra ecosystem, UST lost its peg to the dollar.

try to go hold the nails Using both LUNA and Bitcoin (bitcoin) reserves failed, and with market uncertainty, both UST and LUNA fell to levels unimaginable a few days ago.

Co-founder Do Kwon said a “recovery plan” is imminent, but details are still lacking at the time of writing.

rumor News circulating online suggests that other major cryptocurrency companies may be willing to contribute capital to support the peg.

UST/USD 1-hour candlestick (Bitstamp). Source: TradingView

On May 11, UST traded at just $0.27, briefly dipping to as low as $0.25, 75% below dollar parity.

LUNA/USD is at $6, down more than 90% in May alone.

LUNA/USD 1-day candle chart (Binance). Source: TradingView

Another unintended consequence of the turmoil was BTC/UST hitting absurd levels near $140,000 on major exchange Binance, which pause LUNA and UST withdrew on May 9th.

Bitcoin is performing ‘very well’

In response, analysts’ minds were filled with shock and nervousness about the market recovery.

related: Ethereum Gains Against Bitcoin Despite Crypto Market Plunge – Will ETH/BTC Rise 50% By June?

Attention is also focused on the largest dollar stablecoin, Tether (USDT), as Tether CTO Paolo Ardoino was equally surprised by the recent events.

However, despite potential selling pressure on Bitcoin itself, the largest cryptocurrency avoided a fresh dip below $30,000 at the time of writing.

“I think Bitcoin is doing very well against the backdrop of the Luna saga, forcing a sell-off in BTC. There is still a lot of uncertainty in the market, but the $30,000 level is holding up pretty well for Bitcoin right now,” Philip Swift, Analysis creator of the platform LookIntoBitcointold Cointelegraph in private comments.

“We’re seeing a range of indicators on LookIntoBitcoin that suggest BTC is approaching major ‘value’ levels, with historically strong hands accumulating Bitcoin at value prices. There’s also plenty of evidence that long-term holders won’t be caught off guard by this has been plagued by recent volatility.”

Like other risk assets, BTC/USD faces another source of volatility on the day as US CPI data should be released.

BTC/USD 1 hour candle chart (Bitstamp). Source: TradingView

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