Bitcoin did not oppose U.S. inflation figures or a sudden drop in the TerraUSD-stable coin as it fell below the $ 30,000 level, more specifically to $ 29,085, according to new data from the Coin Market Cap, nearly 11 months old. . however, the “cryptoqueen” has already recovered.
Analysts believe the “collapse” of the stable coin Terra was one reason for this devaluation.
On Saturday, the Earth (UST) began to lose parity with the dollar, which is an unusual phenomenon because the cryptocurrency is a stable coin, that is, less volatile because its price is pegged to another stable asset, in this case the dollar.
However, Token is currently down 43.45% to $ 0.5239, causing investors to distrust the much-lauded stability of this type of asset.
Meanwhile, supporters of this cryptocurrency have already pledged to try to raise $ 1.5 billion to secure the liquidity of this virtual asset.
At the same time, the cryptocurrency could not resist market disappointment with U.S. inflation figures that open the door to a more aggressive restrictive monetary policy by the U.S. Federal Reserve, which is a particularly sensitive issue for stock developments. and Bitcoin, two properties getting closer.
In April, the U.S. consumer price index rose to 0.3 percent year-on-year and 8.3 percent year-on-year.
Excluding food and energy components, the price basket rose to 0.6 per cent from March and to 6.2 per cent from April last year.
These figures mean that the economy slowed down compared to March, when inflation was 8.5%, but is lower than economists estimate.
Experts consulted by Bloomberg estimate the general index in the chain to rise to 0.2 per cent, while the basket excluding food and energy is only 0.4 per cent from the previous month.
“There is a lot of fear in the entire cryptocurrency market,” Marcus Sotiriou, an analyst at virtual real estate brokerage GlobalBlock, told Bloomberg.
“In addition to the macroeconomic headwind, the cryptocurrency industry is at high risk when the globe has fallen below the $ 1 mark,” the expert explains.
The decline in Bitcoin has spread to other cryptocurrency markets, consisting of more than 19,000 assets, which continue to decline 6.97% to $ 1.37 billion.
Meanwhile, Bitcoin has already recovered and is trading on the $ 31,000 line, more specifically $ 31,326.71.