Stablecoin Inflation and Crash Throw Bitcoin Below $30,000 Line

Bitcoin did not resist the inflation numbers in the US or the abrupt drop of the TerraUSD stablecoin, having fallen below the level of 30 thousand dollars, more specifically to 29,085 dollars, renewing lows of almost 11 months, according to data presented by Coin Market Cap. However, “cryptoqueen” has already recovered.

For analysts, the “crash” of the stablecoin Terra was one of the reasons for this devaluation.

On Saturday, the Earth (UST) began to lose parity with the dollar, an unusual phenomenon since the cryptocurrency is a stablecoin, that is, less volatile since its price is pegged to another stable asset, in this case the dollar. .

However, the token is currently falling by 43.45% to $0.5239, generating mistrust among investors about the much-vaunted stability of this type of asset.

Meanwhile, supporters of this cryptocurrency have already committed to trying to raise $1.5 billion to continue to ensure the liquidity of this virtual asset.

At the same time, cryptoqueen could not resist the market’s disappointment in the face of US inflation figures, which open the door to an even more aggressive restrictive monetary policy on the part of the US Federal Reserve, a particularly sensitive issue for stock performance. technologies and bitcoin, two assets increasingly closer.

In April, the US consumer price index increased to 0.3% year on year and to 8.3% year on year.

Excluding the food and energy components, the price basket rose to 0.6% compared to March and to 6.2% compared to April last year.

These numbers mean that there was an economic slowdown compared to March, when inflation touched 8.5%, but falls short of economists’ estimates.

Experts consulted by Bloomberg estimated that the general index would increase to 0.2% in chain, while the basket without food and energy should only rise to 0.4%, compared to the previous month.

“There is great fear in the entire cryptocurrency market,” Marcus Sotiriou, an analyst at virtual asset brokerage GlobalBlock, told Bloomberg.

“In addition to headwinds in macroeconomic terms, the cryptocurrency industry faces a major risk as the Earth has fallen below the $1 line,” the expert clarified.

The drop in bitcoin has spread to the rest of the cryptocurrency market, consisting of more than 19,000 assets and which continues to depreciate by 6.97% to US$1.37 billion.

Meanwhile, bitcoin has already recovered and is trading at the line of 31 thousand dollars, more specifically worth 31,326.71 dollars.