Bitcoin

I write about how bitcoin, crypto and blockchain can change the world. Follow. May 9, 2022, 07:32am EDT ...

Why it matters: UST relies on luna to keep its price of a dollar via a set of on-chain mint and burn mechanisms. On guard: After Terra's algorithmic stablecoin TerraUSD (UST) briefly lost its dollar peg over the weekend, the Luna Foundation Guard (LFG) has announced this morning it will lend out hundreds of millions of dollars worth of bitcoin and the stablecoin UST in order to maintain it. LFG's governing council includes some of the biggest names in decentralized finance (DeFi), such as Jump Crypto president Kanav Kariya. "As markets recover, we plan to have the [UST] loan redeemed to us in bitcoin, increasing the size of our total reserves," Kwon said. Background: LFG is non-profit group that was formed in January to support the Terra ecosystem as well as "the sustainability and stability of Terra’s algorithmic stablecoins" and plans to accumulate a $10 billion bitcoin-based reserve intended to serve as a support mechanism for UST's peg. The Singapore-based LFG said it would loan $750 million worth of bitcoin to trading companies as well as $750 million in UST to accumulate bitcoin in an attempt to stabilize the market.

A multibillion-dollar bet that bitcoin can act as a “reserve currency” for the crypto economy is already being tested as UST, a controversial stablecoin, ...

The plan is to eventually allow UST holders to redeem their tokens in exchange for bitcoin. The world's largest digital coin dropped below $33,000 on Monday, slumping to its lowest level since July 2021. LFG bought another $1.5 billion in bitcoin last week, taking its total reserves to about $3.5 billion. "BTC will likely go lower before it bounces back when short-sellers take profit." The latest challenge arrived over the weekend. Terra's protocols also feature an arbitrage mechanism, where investors can exploit deviating prices in each of the tokens. But that's done little to assuage investors' concerns about the implications for bitcoin. That includes lending $750 million worth of bitcoin to trading firms to "protect the UST peg" and a further 750 million in UST being lent out to buy more bitcoin "as market conditions normalize." The idea is that bitcoin would act as the "reserve currency" for the Terra ecosystem. The model is designed to even out supply and demand for UST. When the price of UST is too high, users are incentivized to burn luna and create new UST, increasing the stablecoin's supply while also decreasing the amount of luna in circulation. A multibillion-dollar bet that bitcoin can act as a "reserve currency" for the crypto economy is already being tested as UST, a controversial stablecoin, struggles to maintain its $1 peg. UST dropped close to 99 cents over the weekend, fueling fears of a potential "bank run" that could force Terra, the project behind it, to dip into a $3.5 billion pile of bitcoin to support the token.

Bitcoin fell to its lowest level since July 2021 on Monday as slumping equity markets continued to hurt cryptocurrencies, which are currently trading in ...

Nasdaq futures were down a further 2.3% on Monday. MKTS-GLOB read more Register now for FREE unlimited access to Reuters.com Register now for FREE unlimited access to Reuters.com

Cryptocurrency losses steepened over the weekend. Crypto trades 24 hours a day, including weekends. “Bitcoin has followed the lead of the equity market, ...

"But other inflation metrics are starting to slow down and the April CPI could follow suit, which in turn will likely alleviate the market's concern and help recover its risk sentiment." Bitcoin needs to maintain the key psychological level of $33,000 to prevent further deterioration of technical sentiment, Hasegawa added. Losses steepened over the weekend. Key U.S. inflation data for the month of April, due to be released Wednesday, could be a temporary "turning point" for bitcoin, according to Yuya Hasegawa, crypto market analyst at Japanese bitcoin exchange Bitbank. Crypto trades 24 hours a day, including weekends. "Bitcoin has followed the lead of the equity market, extending lower after a weak April," said Katie Stockton, founder of Fairlead Strategies. "Short-term momentum has deteriorated … and bitcoin is no longer oversold from a short-term perspective."

The loss of an influential stablecoin's peg with the U.S. dollar over the weekend has prompted fear in the digital-asset market.

Bitcoin’s correlation with stocks is certainly a major factor. Cryptocurrency market analysts are looking around for where to lay the blame as Bitcoin prices plunge on Monday. Why Another, Smaller Crypto Is Partly to Blame as Bitcoin Prices Plunge to Yearly Lows

The value of popular cryprocurrency Bitcoin is taking a hit amid a global stock market sell off that's also seeing tech-focused stocks take heavy hits.

Many tech-oriented stocks have been among the market’s biggest losers this year, including Netflix, Nvidia and Facebook’s parent company Meta Platforms. Bitcoin has lost nearly half its value from the highs the digital currency enjoyed in November 2021. Bitcoin is seeing its value rapidly erode amid a global stock market downturn.

Other cryptocurrencies, sometimes referred to as altcoins, have been hit hard too. Ethereum, binance, solana and cardano are all down about 15% in the past week ...

The Federal Reserve is starting to pull back on monthly bond purchases and other stimulus which could be bad news for all sorts of speculative assets. The CNN Business Fear & Greed Index That's bad news for bitcoin too, as many crypto backers point to dollar weakness as a bullish sign for digital currencies. , which tends tor rise in tandem with interest rates. The massive pullback in these and other momentum tech stocks is yet another sign of the rapid shift in the market's mood this year. and susceptible to the same concerns that are dragging down the Dow

Tightening monetary policy to combat runaway inflation and ebbing liquidity are turning investors away from speculative assets across global markets. Adding to ...

Rising interest rates are giving individual and institutional investors pause for thought about the crypto market outlook, according to Edul Patel, chief executive officer of Mudrex, an algorithm-based crypto investment platform. Tightening monetary policy to combat runaway inflation and ebbing liquidity are turning investors away from speculative assets across global markets. Bitcoin’s 29 per cent decline in 2022 compares with a retreat of more than 10 per cent in global bonds and shares, and a 2.5 per cent advance in gold. Bitcoin’s recent decline puts it at risk of firmly dropping out of the range where it’s been trading in 2022, completely reversing the most recent bull run that drove the token to a record of almost US$69,000 in November. With its 40-day correlation with the S&P 500 stock benchmark at a record 0.82, according to data compiled by Bloomberg, any further hit to equities sentiment would risk dragging Bitcoin down as well. “In light of fears of rising inflation, most investors have taken a risk-off approach -- selling stocks and cryptos alike in order to cut down risk,” said Darshan Bathija, chief executive of Singapore-based crypto exchange Vauld. “Crypto probably trades correlated to the Nasdaq until we hit a new equilibrium,” Novogratz said on Galaxy’s first-quarter earnings call on Monday. “My instinct is there’s some more damage to be done, and that will trade in a very choppy, volatile and difficult market for at least the next few quarters before people are getting some sense that we’re at an equilibrium.”

Bitcoin is falling toward levels last seen in July 2021, part of a wider retreat in cryptocurrencies amid a global flight from riskier investments.

Bitcoin is falling toward levels last seen in July 2021, part of a wider retreat in cryptocurrencies amid a global flight from riskier investments.

Bitcoin slumped to a level last seen in July 2021, part of a wider retreat in cryptocurrencies triggered by a global flight from riskier investments.

Rising interest rates are giving individual and institutional investors pause for thought about the crypto market outlook, according to Edul Patel, chief executive officer of Mudrex, an algorithm-based crypto investment platform. Tightening monetary policy to combat runaway inflation and ebbing liquidity are turning investors away from speculative assets across global markets. Bitcoin’s 29% decline in 2022 compares with a retreat of more than 10% in global bonds and shares, and a 2.5% advance in gold. The world’s largest digital token fell as much as 5.1% on Monday and traded at around $32,630 at 10:47 a.m. in New York. Ether fell as much as 7%, while Solana dropped 7.3% and Avalanche dipped 9.4%. “Crypto probably trades correlated to the Nasdaq until we hit a new equilibrium,” Novogratz said on Galaxy’s first-quarter earnings call on Monday. “My instinct is there’s some more damage to be done, and that will trade in a very choppy, volatile and difficult market for at least the next few quarters before people are getting some sense that we’re at an equilibrium.” The world’s largest digital token fell as much as 5.1 percent on Monday and traded at around $32,630 at 10:47am in New York (14:47 GMT).