Bitcoin falls below $27K to December 2020 lows as Tether stablecoin peg slips under 99 cents

The price of Bitcoin fell to a low of around $27,000 on December 15th as the volatility in crypto markets continued. Other coins have also fallen with the fall in BTC which caused the market cap of all cryptocurrencies to drop more than 12 percent this week alone.

The “tether price” is a cryptocurrency that is pegged to the US dollar. The “Tether stablecoin peg slips under 99 cents”.

On May 12, Bitcoin (BTC) broke out of its long-term trading range, with markets falling to levels seen in 2020.

Bitcoin falls below $27K to December 2020 lows as Tether stablecoin peg slips under 99 cents1 hour candle chart of BTC/USD (Bitstamp). TradingView (source)

Tether is shaky as UST remains below Tether wobbles as UST stays under $0.60.60.

BTC/USD departed the range in which it has moved since the start of 2021, according to data from Cointelegraph Markets Pro and TradingView.

On Bitstamp, the pair was trading around $26,700 at the time of writing, its lowest since December 28, 2020.

The downturn occurred as the aftermath from the Terra stablecoin crisis began to reverberate across crypto and beyond, with allegations circulating that professional funds were having solvency concerns as a result of LUNA and UST losses.

“People are still digesting this, but this is crypto’s Lehman moment.”

Hearing that the Luna catastrophe has rendered several funds bankrupt.

May 12, 2022 — Frank Chaparro (@fintechfrank)

Tether’s internal token, LUNA, has almost lost all of its value at the time of writing, trading at roughly LUNA, Tether’s in-house token, had all but capitulated in value at the time of writing, trading at around $0.22. At the start of May, LUNA/USD traded at $80..22. LUNA/USD was trading at $80 at the beginning of May.

Bitcoin falls below $27K to December 2020 lows as Tether stablecoin peg slips under 99 cents1-day candle chart for LUNA/USD (Binance). TradingView (source)

UST was trading about UST, currently the focus of Terra executives committed to restoring its U.S. dollar peg, was at around $0.60, still far from $1 but more than double the week’s record lows..60, still a long way from $1 but more than twice the week’s lows.

Bitcoin falls below $27K to December 2020 lows as Tether stablecoin peg slips under 99 cents1-hour candle chart of UST/USD (Coinbase). TradingView (source)

Nonetheless, the pressure was becoming more obvious throughout crypto, as Tether (USDT), the biggest stablecoin, started to show troubling indicators that it was following UST’s demise.

USDT/USD was under At the time of writing, USDT/USD was under $0.99 on major exchanges..99 on key exchanges at the time of publishing.

Tether chief technical officer Paolo Ardoino commented on system stability, saying that USDT withdrawals were continuing normally.

“>300M redeemed in last 24h without a sweat drop,” part of a tweet read.

Bitcoin falls below $27K to December 2020 lows as Tether stablecoin peg slips under 99 cents1-hour candle chart for USDT/USD (Bitstamp). TradingView (source)

According to data from on-chain analytics company CryptoQuant, prominent exchanges have seen historic outflows of stablecoins.

Bitcoin falls below $27K to December 2020 lows as Tether stablecoin peg slips under 99 centsOutflows of stablecoins on the exchange. CryptoQuant (source)

In under 24 hours, $1.22 billion was liquidated.

Analysts were nevertheless inclined to regard present levels as a possible opportunity if the macro range bottom formed in January 2021 was lost.

Ethereum whales are active as transactions reach a new high since January.

“In a macro rally, you will gain multiples of what you lose in a macro slump. Simply pay attention to the markets when they are really negative “Rekt Capital, a well-known trader, suggested.

On May 11, I mentioned the macro range in a tweet.

If #BTC loses this green support area…

#Crypto #Bitcoin pic.twitter.com/ReIa6D4yw3 That will be confirmation that $BTC will undergo a multi-month downturn.

May 11, 2022 — Rekt Capital (@rektcapital)

Market liquidations indicated the magnitude of the losses. According to data from on-chain monitoring service Coinglass, the total value of Bitcoin and altcoins reached $1.2 billion in the 24 hours leading up to the time of writing.

The author’s thoughts and opinions are completely his or her own and do not necessarily represent those of Cointelegraph.com. Every investing and trading choice has risk, so do your homework before making a decision.

The “bitcoin price history chart” is a visual representation of the ups and downs in bitcoin’s value. It can be used to see how low the cryptocurrency has fallen in recent months.

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