Bitcoin (BTC), which was under constant sell pressure, fell from its long-term trading range in May 12.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
Tether moves as UST remains below $0.60
Data from TradingView and Cointelegraph Markets Pro followed BTC/USD when it left the range it had traded since 2021.
The pair was at $26,700 on Bitstamp at the time of writing. This is its lowest level since Dec 28, 2020.
As fallout from Terra’s meltdown continued to ricochet around crypto, and beyond, rumors claimed that professional funds were facing solvency problems due to Terra (LUNA), and TerraUSD (UST).
“People are still processing it but this is the Lehman Moment for crypto” Hear about many funds potentially insolvent due to Luna meltdown
— Frank Chaparro (@fintechfrank) May 12, 2022
Terra’s in-house token LUNA had almost lost its value by the time this article was written. It traded at $0.22 at the time. LUNA/USD traded at $80 at the beginning of May.
LUNA/USD 1-day candle charts (Binance). Source: TradingView
UST is currently Terra’s focus. It was trading at $0.60. This was still well below $1.00, but higher than the record lows of the week.
1 hour candle chart for USD/UST (Coinbase). Source: TradingView
Nevertheless, this strain was becoming more visible in crypto as the largest stablecoin Tether USDT began to show worrying signs that it was following UST’s lead.
USDT/USD was below $0.99 at the time of writing.
Paolo Ardoino, chief technology officer at Tether, commented on the stability of the system. He said that USDT withdrawals were going as normal.
Part of a tweet said, “>300M redeemed within the last 24h without any sweat drop,”
Candle chart USDT/USD 1 hour (Bitstamp) Source: TradingView
CryptoQuant, an on-chain analytics firm, added that records were set for stablecoin outflows on major exchanges.
Chart of stablecoin exchange outflows Source: CryptoQuant
In 24 hours, $1.22 Billion liquidated
Analysts were open to the possibility of the current levels being lost, despite the fact that the macro range low was created in January 2021.
Related: Ethereum whales are busy as transactions reach highest point since January
“Whatever you lose during a macro downtrend you will gain back in a micro uptrend.” Rekt Capital, a popular trader, stated that you only need to pay attention to markets when they are extremely bearish.
An earlier tweet, May 11, highlighted the macro range.
If #BTC loses this green area as support… That will be the confirmation that $BTC will enter a multi-month downtrend#Crypto #Bitcoin pic.twitter.com/ReIa6D4yw3
— Rekt Capital (@rektcapital) May 11, 2022
Market liquidations reflected the extent of losses. According to Coinglass, the total market liquidations for Bitcoin and other altcoins topped $1.2 Billion in 24 hours.
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