Economy

Bitcoin steady at $30K, TerraUSD falls below $0.1

Controversial stable coin UST is far from its intended $1 peg

Övünç Kutlu   | 18.05.2022
Bitcoin steady at $30K, TerraUSD falls below $0.1

ANKARA

The price of Bitcoin was steady at around $30,000 on Wednesday, but the stable coin TerraUSD known as UST fell below $0.1.

Bitcoin, the world’s biggest crypto by market cap, was trading at $30,029 at 1005GMT for a daily loss of 1.8%.

The price of Ethereum, the world’s largest altcoin, was around $2,040 at the time for a daily loss of 2.2%.

The crypto market lost almost half of its value during the last six weeks, standing at $1.28 trillion at the time.

The market cap is down from $2.19 trillion recorded on April 4 when the US Federal Reserve increased interest rates by 50 basis points, and signaled more rate hikes are on the way in June and July.

The Fed's monetary tightening has spooked investors since there will be less liquidity in the markets, which caused turmoil in stock exchanges from the US to Europe.

The crypto market is also struggling with inner hurdles, especially with the controversial stable coin UST plummeting since last week.

Initially designed to be pegged one-to-one with the US dollar, the price of the UST continued its decline and fell below $0.1 at 0630GMT.

Luna Foundation Guard, the organization behind UST, sold at least $2.1 billion worth of Bitcoin in the past 10 days to support the price of UST, according to released figures on Monday.

Many crypto investors partially blame the organization for selling Bitcoin and causing a decline in its price to bring the value of UST back to $1.

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