Bitcoin

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

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).

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

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

Cryptos slumped across the board all weekend, and added to declines Monday morning as global equity markets swooned.

Some $45 million flowed into these funds in the week through May 6. Investors apparently bought the market dip.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. The newsletter seeks to bolster its DAO and NFT sales with the funding. The price briefly spiked to $40,000 after the U.S. Federal Reserve hiked rates by 0.5 percentage point last week. “Interestingly, we have not seen the same spike in investment-product trading activity, as we typically see historically during extreme price weakness periods," Butterfill said. This came despite a plunge in prices for bitcoin ( BTC) and most other cryptocurrencies. The newsletter seeks to bolster its DAO and NFT sales with the funding.

Concerns that aggressive interest-rate increases, geopolitical tensions from Russia's invasion of Ukraine, and another Covid-induced economic slump in China ...

Concerns that aggressive interest-rate increases, geopolitical tensions from Russia’s invasion of Ukraine, and another Covid-induced economic slump in China have already pulled the Nasdaq into a bear market. - Print Article - Order Reprints