Crypto

Cryptocurrency TerraUSD Plunges as Investors Bail

Published

3 years ago

May 11, 2022

Press Room

Cryptocurrency TerraUSD Plunges as Investors Bail

The break in TerraUSD’s peg started over the weekend with a collection of huge withdrawals of TerraUSD from Anchor Protocol, a kind of decentralized financial institution for crypto buyers.

Picture:

Tiffany Hagler-Geard/Bloomberg Information

A selloff in a cryptocurrency that was imagined to be pegged to $1 accelerated Wednesday, sending its worth to lower than 1 / 4 of that worth.

TerraUSD traded at 24 cents Wednesday, based on information from CoinDesk, wiping out greater than $10 billion in market capitalization within the span of some hours. A so-called stablecoin, this breed of cryptocurrencies had gained favor amongst merchants for being the one a part of the crypto universe that was revered for its stability.

Whereas the preferred stablecoins keep their ranges with property that embrace dollar-denominated debt and money, TerraUSD is what is named an algorithmic stablecoin, which depends on monetary engineering to take care of its hyperlink to the greenback.

The break in TerraUSD’s peg started over the weekend with a collection of huge withdrawals of TerraUSD from Anchor Protocol, a kind of decentralized financial institution for crypto buyers.

Anchor Protocol is constructed on the know-how of the identical Terra blockchain community that TerraUSD relies on. It had been a significant factor within the progress of the stablecoin in latest months by permitting crypto buyers to earn returns of almost 20% yearly by lending out their TerraUSD holdings.

On the identical time, TerraUSD was additionally offered for different stablecoins backed by conventional property via numerous liquidity swimming pools that contribute to the soundness of the peg, in addition to via cryptocurrency exchanges. The sudden outflow of cash spooked some merchants who started promoting TerraUSD and its sister token Luna.

TerraUSD’s fall to 24 cents marked a 70% plunge from its worth 24 hours prior, based on CoinDesk. Luna traded at $4.62—an 85% plunge over the identical interval.

Write to Caitlin Ostroff at caitlin.ostroff@wsj.com and Elaine Yu at elaine.yu@wsj.com

Click to comment

Crypto

Bitcoin 'On Brink Of Breaking $100,000,' Dogecoin Up, Ethereum Down: Crypto Community Holds Its Breath As BTC Guns For Milestone

Published

3 hours ago

November 22, 2024

Press Room

Bitcoin 'On Brink Of Breaking 0,000,' Dogecoin Up, Ethereum Down: Crypto Community Holds Its Breath As BTC Guns For Milestone

Cryptocurrency markets are trading higher, with Bitcoin hovering around $100,000 and Jim Cramer suggesting it is “a winner.”

Cryptocurrency	Price	Gains +/-
Bitcoin BTC/USD	$99,254.71	+0.88%
Ethereum ETH/USD	$3,281.28	-2.1%
Solana SOL/USD	$253.09	-0.8%
Dogecoin DOGE/USD	$0.3987	+3.7%
Shiba Inu SHIB/USD	$0.00002463	+0.3%

Notable Statistics:

IntoTheBlock data shows large transaction volume increasing by 47.5% and daily active addresses growing by 27.2%. Transactions greater than $100,000 are up from 13,321 to 18,859 in a single day. Exchanges netflows are down by 4.5%.
Coinglass data reports 113,608 traders were liquidated in the past 24 hours for $340.73 million. Open interest continues to stand at peak levels, $64 billion.
Polymarket data shows there is a 60% chance of Bitcoin touching $100,000 today and an 89% probability of it happening this month.

Notable Developments:

Top Gainers:

Cryptocurrency	Price	Gains +/-
Stellar XLM/USD	$0.3194	+28.2%
XRP XRP/USD	$1.42	+20.6%
Cardano ADA/USD	$0.9647	+19.9%

Trader Notes: Bitcoin nearing $100,000 sparked mixed sentiments among traders.

Altcoin Sherpa quipped “See you guys at $60,000” when Bitcoin failed to break through the psychological barrier.

Crypto trader Seth highlights a “thick and sticky sell wall” as the obstacle.

Dogecoin founder Billy Markus stated, “maybe bitcoin will become a $99,000 stablecoin.”

Quinten Francois remains optimistic, stating the Bitcoin bull market has “just started.”

Daan Crypto Trades explained that traders are preemptively shifting from altcoins to Bitcoin as it edges closer to the $100,000 milestone.

He predicts a breakout, followed by consolidation could lead to altcoin rebounds. Until then, Bitcoin is expected to continue absorbing liquidity.

Read Next:

Image: Shutterstock

Market News and Data brought to you by Benzinga APIs

Crypto

Dogecoin Up 3%, Shiba Inu Up 4%: What Is Going On?

Published

10 hours ago

November 22, 2024

Press Room

Dogecoin Up 3%, Shiba Inu Up 4%: What Is Going On?

Dogecoin DOGE/USD and Shiba Inu SHIB/USD are trading around 3% higher in a single day boosted by the optimism in the cryptocurrency market.

Cryptocurrency	Price	Market Cap	24-Hour Trend	7-Day Trend
Dogecoin	$0.3923	$57.6 Billion	+2.8%	+5.3%
Shiba Inu	$0.00002496	$14.7 Billion	+4.2%	+3.1%

Trader Notes: Analysts see bullish potential for the top two meme coins.

Crypto chart analyst Ali Martinez predicts a potential rally for Shiba Inu, suggesting SHIB could hit $0.00049 if it mirrors DOGE’s pattern.

Trader Javon Marks highlights SHIB’s daily chart with a possible bull pattern confirmation. A breakout target of $0.000081—216% above current levels—could see SHIB surge more than 200%.

For Dogecoin, Altcoin Sherpa notes the recent correction as not bearish, seeing opportunities for buyers with another leg up expected soon.

Crypto Amsterdam observes DOGE hovering in a mid-range phase, suggesting $1 could be on the horizon.

Meanwhile, trader Kevin forecasts a DOGE breakout by Saturday.

Statistics: IntoTheBlock Data shows:

Large transaction volume increasing for DOGE (+41.1%) and SHIB (+44.9%).
Daily active addresses rising by 34.9% for DOGE and 10.7% for SHIB.
SHIB transactions above $100,000 up from 332 to 399 in one day.

Shibarium Activity: Daily transactions climbed from 4.66 million on Nov. 20 to 4.75 million on Nov. 21.

Read Next:

Image: Shutterstock

Market News and Data brought to you by Benzinga APIs

Crypto

Bitcoin nears $100,000 as investors bet on crypto-friendly Trump policies

Published

20 hours ago

November 21, 2024

Press Room

Bitcoin nears 0,000 as investors bet on crypto-friendly Trump policies

World’s popular digital currency rises as high as $99,073 on expectations Trump will ease legal and regulatory hurdles.

Bitcoin is nearing the $100,000 mark as crypto enthusiasts bet that United States President-elect Donald Trump will usher in a more welcoming regulatory environment for digital assets.

The world’s most popular digital currency rose as high as $99,073 on Thursday, extending its surge since Trump’s re-election on November 5.

The commodity has risen more than 60 percent since election day as investors anticipate Trump’s incoming administration to ease regulatory and legal hurdles to its use.

Trump, who called the asset a “scam” during his first term, accepted campaign donations in cryptocurrency, and has pledged to make the US “the crypto capital of the planet” and accumulate a national bitcoin reserve.

Trump and his three sons in September also announced the launch of their own crypto business, World Liberty Financial, which investors have taken as a promising sign of the president-elect’s belief in the sector.

In another bullish signal for the sector on Thursday, United States Securities and Exchange Commission (SEC) chair, Gary Gensler, who was widely disliked among crypto investors for his aggressive enforcement actions targeting the sector, confirmed that he would step down in January.

Trump had pledged to fire Gensler on “day one” of his administration, though the president does not have the authority to remove the SEC chair before the end of his or her term.

While viewed by supporters as a ticket to big returns and financial freedom, Bitcoin and other cryptocurrencies are known for their volatility and have faced government crackdowns in several parts of the world.

After climbing to a record high of $69,000 in late 2021, Bitcoin plunged to less than $16,000 over the following year.

The commodity burst past its previous peak in March after gaining more than 300 percent since November 2022.