Bitcoin Plummets to 10-Month Low Breaching Support Level to Below $30,000
Daily Market Wrap
Crypto market cap: 1.41 trillion, down 7.94%
BTC price stands at USD 31,081, down 7.45%
ETH price stands at USD 2,329, down 5.51%
Top gainer: Pax Dollar (USDP), up 0.49%
Top loser: Terra (LUNA), down 51.03%
News of the Day
Bitcoin plummets to 10-month low breaching support level to below $30,000.
Why it matters:
Bitcoin drops below $30,000 over the weekend after a stock sell-off in the U.S. last week
Bearish sentiment continues to dominate the market as the Fed has to slow down inflation at all costs, leading to a deep market correction between stocks and crypto over the past six months
The all-time high of $69,000 was reached in late 2021. At the time of writing, the market correction has experienced over 50%
Crypto daily spotlight
Brief introduction: Terra is a decentralised stablecoin blockchain that uses fiat-pegged stablecoins to power price-stable global payments systems. Terra’s native token LUNA is used to stabilize the price of the protocol’s stablecoins.
Why it matters:
TerraUSD (UST) stablecoin briefly lost its dollar peg to .987 on Saturday and to as low as .650 on Monday
The reason for the loss of parity was figured out by a crypto researcher Mika Honkasalo that a significant amount of UST swapped for USDC happened on Curve
After that, Terraform Labs co-founder Do Kwon tweeted out a chart saying the loss of parity was due to 62% of Anchor withdrawals by a “single wallet”. He quickly deleted the tweet as he realized that he misread the chart
The de-pegging appeared to kick off with a series of FOMO withdrawals from Anchor Protocol as well, leading to a total of UST deposits falling from $14 billion down to $7.1 billion
Daily sector tracker
Daily News Roundup
Luna Foundation Guard (LFG) Will Lend $1.5 Billion in BTC and UST For Stablecoin Peg https://bit.ly/3w4vOKB
SEC Grants the Approval for Teucrium’s Bitcoin Futures ETF https://bit.ly/3KlkyxN
Meta’s Instagram Plans to Support NFTs For Ethereum, Polygon, Solana, Flow https://bit.ly/3wcyOmH
Binance Reportedly Stop Providing Crypto Derivatives Service in Spain https://bit.ly/3KUW0vd
Nvidia Pays $5.5 Million Fine for Over Inadequate Cryptomining Disclosures https://bit.ly/3vUWGfJ
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