UST, the so-called stablecoin issued by the Terra project and pegged 1:1 to the US dollar, turned out to be not such a "stablecoin", as it turned out. Today, it fell to 0.23 cents, which brought down the entire Terra project and its Luna token. The collapse in just one day amounted to more than 80%, which is very sad for the entire crypto community and the market as a whole. The reason for this was not the technical problems of the platform. According to some experts, Blackrock and Citadel took advantage of the vulnerability.
It was all the fault of the greed of some (Terra) and the ingenuity of others (Blackrock and Citadel) - the latter came out victorious if they were behind the whole thing. Let me remind you that stablecoins are akin to bank accounts for the crypto economy. They offer a reliable means of saving, allowing you to avoid the volatility that is observed in cryptocurrencies.
UST is a so-called "algorithmic" stable coin. It uses a complex system of issuing and burning tokens to regulate supply. However, the UST price collapsed under the pressure of the recent sale of cryptocurrencies, which led to further panic in the market and an even greater collapse. The demand for UST has been enormous lately, and the reason for this was the high rates offered as a result of coin staking. The rates reached up to 20%. Naturally, money poured in there. This was the main reason for the collapse, as the company could not provide everyone with liquidity. The creditworthiness exceeded the real volume of coins by more than three times.
After the collapse of Terra, bitcoin briefly fell below $ 30,000, but then partially regained its position.Another problem is that Do Kwon, the creator of the UST coin, accumulated billions of dollars worth of bitcoins through his Luna Foundation Guard fund to support UST, which, as it turned out, was not enough. Now many fear that the Luna Foundation Guard will throw these bitcoins on the market, which will lead to an even bigger sale. For this reason, investors are closely watching how Luna Foundation Guard will respond to UST support. Kwon said Tuesday that he is close to announcing a rescue plan for UST. The plan didn't work, or it won't be needed anymore.
Some well-known crypto specialists have concluded that it is Blackrock and Citadel that is behind the collapse of Terra. On Twitter, you can find something like this collapse scheme: the attacker on the OTC accumulated $1 billion UST and borrowed BTC for $ 3 billion. Then he launched a FUD about the UST binding and sold all his BTC on the market to sow panic. The company withdrew some of the liquidity, but the attacker started selling UST on Binance, which is why there was a small decoupling from $ 1. Immediately after that, Terra began selling BTC, but the attackers were ready for this, starting to actively short the market while draining even more UST. When Terra realized this, they stopped selling BTC, but it was too late, although UST tried to recover on its own at the moment.
As a result, Luna dropped from $ 100 a month ago to $ 1.57 at the time of writing, and UST, which should be 1 to 1, is now at 40 cents - at the moment it was at 20.
We can safely say that the Terra project has a bold cross.
As for the technical picture of bitcoin
Bitcoin has grown slightly after another major sell-off, but its further correction is questionable. At the moment, for the development of the initiative on the part of the bulls, active actions are needed in the area of $ 32,300, which will quickly return the trading instrument to $ 34,350, allowing investors to calm their nerves a little. Equally important will be the protection of the intermediate level of $ 30,000, which sellers are now looking at. The fact that bitcoin continues to enjoy support from major players may mitigate its fall, which is likely if the bulls do not offer anything for $ 30,000. The decline of the US stock market, as well as the sharp drop in the NASDAQ technology index, will surely pull bitcoin down with them. This will happen only in case of a negative reaction to inflation in the United States. A breakdown of the $ 30,000 level will fail the trading instrument below, to a minimum of $ 27,900, and there you can reach up to $ 25,7000. The bears' furthest target will be the $ 21,900 area.
As for the technical picture of the ether
The focus remains on the $ 2,460 resistance. A break of this level will quickly return the ether to $ 2,630, and there is $ 2,790 very close, which will be a serious problem for traders. Only consolidation above will allow building an uptrend for the trading instrument with the prospect of updating the highs in the areas of $ 2,950 and $ 3,158. In the event of a return of pressure on ETH, purchases in the area of large support of $ 2,250 are not excluded, as it has been recently. A break in this range will be a reason to go to the lows of $ 2,020 and $ 1,780, where the major players will again begin to actively act.