The price of Bitcoin has reached a level that many feared and dropped below $30K. This is the first time the cryptocurrency has hit this low since last July.
Between this news and the catastrophic drop in other projects, the panic “towards zero” is being felt in the crypto market and lowers the overall price of the sector.
All cryptocurrencies powered by Bitcoin were already in decline, but after TerraUSD (UST), a purported dollar-backed stablecoin, fell well below its promised price, selling pressure eventually increased even more, sparking a red sea across the market.
Bitcoin’s price fell to USD 30K a few days after testing this support level earlier in the week. Shortly thereafter, the support failed and the coin sank below $30,000, currently trading around $29,140, with $29,000 being more than essential support for the market to hold.
Similarly, almost all other cryptocurrencies show losses during the day as well. Ethereum is down about 9.7% in the last 24 hours, Binance Coin (BNB) is bleeding 15% over the same period. Solana, on the other hand, has lost more than 30% in the past 24 hours in a history repeating itself by the other currencies.
One of the biggest losers in recent days was certainly Terra (LUNA), which would be the base currency for the UST, which had promised to always accompany the dollar. Once UST lost value of $1, which could never happen, confidence in the project plummeted, as did the price of LUNA.
In the past 7 days, the LUNA lost 98% of its value94% in the last 24 hours alone.
For the CEO of ANB Investments, Jaime Baeza, the UST is responsible for the widespread crypto market collapse.
“The crypto market is under pressure due to macro events (tighter monetary policy, increased inflation, invasion of Ukraine) and the correlation between Bitcoin and global stocks. However, the most recent decline was blamed on the ballast of the UST.” , said Jaime Baeza, CEO of ANB Investments.
UST, the largest algorithmic stablecoin by market cap in the world, started losing support from the dollar on Saturday, since then the ripple effect has spread across the sector.
“This accelerated sales in the crypto market as a whole as the panic spread and with more black swan events looming,” concluded Baeza.
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.
