The collapse of the TerraUSD (UST) cryptocurrency created an anomaly in a Bitcoin trading pair, which is “firing” on Binance. That’s because investors fearing the future of the stable currency project are pulling out of their positions as best they can.
And the most curious thing about this whole story is that the UST has been identified as one of the causes of bitcoin’s new fall in global markets.
It’s worth remembering that this coin, supposedly a stablecoin, was once the third largest by market capitalization of dollar-backed currencies. With its imminent, seemingly unstoppable fall, even its sister currency and associates have struggled.
Bitcoin Rising on Binance at Pair with UST, What Happened?
Cryptocurrencies are going through a turbulent time and several uncertainties this week, the main cause being the collapse of a stablecoin cryptocurrency.
The stablecoin is going through an unusual situation and has already fallen 70% of its parity with the dollar, without showing anything stable with its market price. This has certainly impacted the price of bitcoin, which was bought by the company in recent days and is now being sold.
But even with the selling pressure on the largest cryptocurrency, in the BTC/UST pair the climate is totally different. That’s because Bitcoin recorded a 24-hour high of over 100% against TerraUSD, reaching a price of $137,999.00 within minutes.
At the time of writing, bitcoin price is still above $60,000 against the UST, showing that an anomaly has occurred with BTC prices, particularly on Binance.
Keep in mind that, In fact, the price of bitcoin is $31,000, which has reached $29,000 in the past few hours.† That is, far from what is happening in the UST pair, a currency that is plummeting and causing problems for its entire ecosystem.
EarthUSD’s sister cryptocurrencies are dying fast
With the collapse of TerraUSD in the market, several other cryptocurrencies are also struggling, some with direct links to this matter.
One of these is Terra itself (LUNA), which fell 96% in the market and is already worth $1.27 in just 24 hours. This could lead to more difficulties for the project to reboot or even recover without major changes to the protocol.
The DeFi Anchor Protocol follows the decline in associated coins, losing 65% in value last day and trading at US$0.3 (11) this Wednesday.
With the entire LUNA ecosystem dying, Cardano co-founder Charles Hoskinson suggested that this was an operation of the giants BlackRock and Citadel, who sold their property and flattened the entire market. This rumor has not yet been confirmed by those responsible for Luna, and the market is still investigating the matter.
Source: Live Coins
John Cameron is a journalist at The Nation View specializing in world news and current events, particularly in international politics and diplomacy. With expertise in international relations, he covers a range of topics including conflicts, politics and economic trends.
