There are two main factors driving pressure on bitcoin prices right now, Caleb Franzen, senior market analyst at Cubic Analytics, said to TechCrunch.
The rising rate environment, paired with weakening economic activity, is creating a risk-off environment, Franzen added.
Terraform Labs — emptied its treasury wallet of all of its bitcoin, about 42,530 bitcoin, or $1.3 billion, today.
The UST stablecoin has lost its 1:1 dollar peg ratio for the second time in the past three days and dropped as much as 5.3% to 95 cents on Monday, when it should be always held extremely close to $1.
But UST is designed to withstand shocks because it’s an algorithmic stablecoin, Twitter user stablechen, a Terra developer, tweeted.
Kwon tweeted earlier today that it was “deploying more capital,” but provided no further details.
UST de-pegging will likely weaken the demand for marginal or less popular stablecoins, but it would not spell the end for stablecoins in general, Furlong said.