{"id":13613,"date":"2022-05-13T09:15:01","date_gmt":"2022-05-13T09:15:01","guid":{"rendered":"https:\/\/harchi90.com\/cryptocurrency-luna-crashes-to-0-as-ust-falls-from-peg-bitcoin-rises\/"},"modified":"2022-05-13T09:15:01","modified_gmt":"2022-05-13T09:15:01","slug":"cryptocurrency-luna-crashes-to-0-as-ust-falls-from-peg-bitcoin-rises","status":"publish","type":"post","link":"https:\/\/harchi90.com\/cryptocurrency-luna-crashes-to-0-as-ust-falls-from-peg-bitcoin-rises\/","title":{"rendered":"Cryptocurrency luna crashes to $ 0 as UST falls from peg; bitcoin rises"},"content":{"rendered":"
<\/p>\n
\n

Bitcoin staged a rebound on Friday, jumping above $ 30,000 despite the ongoing woes of stablecoin TerraUSD which has caused panic in the crypto market.<\/p>\n

The world’s largest cryptocurrency bitcoin was trading at around $ 30,262.85 at 4 am ET on Friday, according to CoinGecko data, up 8% in the last 24 hours after it dropped to levels not seen since late 2020 earlier this week.<\/p>\n

However, the digital currency is still down 16% in the last seven days.<\/p>\n

The recent crypto meltdown, which has seen billions of dollars wiped off the market, has in large part been sparked by the crash of a controversial stablecoin known as TerraUSD or UST, which is supposed to be pegged one-to-one with the US dollar .<\/p>\n

UST has however lost its peg and on Friday was trading at around 14 cents, according to data from CoinGecko.<\/p>\n

Luna, a token closely associated with UST, is now worth $ 0 as a result.<\/p>\n<\/div>\n

\n

FSO and luna are linked. UST is dubbed an algorithmic stablecoin meaning its $ 1 peg is supposed to be governed by underlying code. That is fundamentally different to other stablecoins like tether and USDC which are backed by real-world assets such as bonds. UST has no real-world reserves.<\/p>\n

The UST algorithm works through a complex system of minting and burning tokens to maintain price stability. A UST token is created by destroying some of the related cryptocurrency luna to maintain the dollar peg.<\/p>\n

But the extreme market volatility has put UST to the test and it has been unable to maintain the peg.<\/p>\n

Adding further complications is the fact that the Terra blockchain which underpins UST and luna stopped processing transactions twice in the less than 24 hours.<\/p>\n

On top of the UST saga, crypto markets have been hit by a number of other headwinds including higher inflation and interest rate hikes that have caused a sell-off in global stock markets which has filtered through. The price movements of cryptocurrencies have been correlated to stock markets.<\/p>\n

“The Luna \/ UST situation has hit market confidence quite badly. Overall most cryptocurrencies are down [more than] 50%. Combining this with global inflation and growth fears, does not bode well in general for crypto, “said Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno.<\/p>\n

Even the big bitcoin rebound may not be sustainable.<\/p>\n

“In such markets, its normal to see bounces amounting to 10-30%. These are normally bear market bounces, testing previous support levels as resistance,” Ayyar said.<\/p>\n<\/div>\n<\/div>\n

.<\/p>\n","protected":false},"excerpt":{"rendered":"

Bitcoin staged a rebound on Friday, jumping above $ 30,000 despite the ongoing woes of stablecoin TerraUSD which has caused panic in the crypto market. The world’s largest cryptocurrency bitcoin was trading at around $ 30,262.85 at 4 am ET on Friday, according to CoinGecko data, up 8% in the last 24 hours after it …<\/p>\n

Cryptocurrency luna crashes to $ 0 as UST falls from peg; bitcoin rises<\/span> Read More »<\/a><\/p>\n","protected":false},"author":1,"featured_media":13614,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","spay_email":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[8],"tags":[8444,118,1585,6765,6897,112,130,7757,8443,8442],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/image.cnbcfm.com\/api\/v1\/image\/107059229-1652254397677-gettyimages-1016927674-648a8254.jpeg?ssl=1","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"fifu_image_url":"https:\/\/image.cnbcfm.com\/api\/v1\/image\/107059229-1652254397677-gettyimages-1016927674-648a8254.jpeg?v=1652255045&w=1920&h=1080","_links":{"self":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/posts\/13613"}],"collection":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/comments?post=13613"}],"version-history":[{"count":0,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/posts\/13613\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/media\/13614"}],"wp:attachment":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/media?parent=13613"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/categories?post=13613"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/tags?post=13613"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}