UST Massive Sell | 35000 BTC on Binance | Stablecoin is not Secure | News Impact | What I Do |
Hello, my friends. I cannot tell that you will be good today; you will most likely be tense.
- The first question is, why there was such a large drop in bitcoin?
I’ve previously warned you that bitcoin will reach $30000. I also discussed where you can take scalping trades for around $30,000. Be a little more engaged in my posts so you may continue to acquire the required data and trading ideas. You may read my article by following the link below.
- What will happen next, and whether or not to enter this dip market?
- We will also discuss why there was such a large dump in Terra (Luna).
UST
You might be shocked to learn that the cause of the bitcoin crash was UST. UST is Terra’s stable coin (Luna).
285 Million UST Sells
On Curve Finance, one wallet sold USTs valued $285 million. On Twitter, whose news went viral. Anchor Protocol is a Terra (Luna) project in which UST was staked and gained a 20% APY. With the announcement of Massive UST Sales, everyone has withdrawn UST from stacking. Then everyone started selling UST.
35000 Bitcoins
The Terra (Luna) Foundation then transferred approximately 35000 bitcoins to the Binance exchange. Following that, the market went into complete chaos. As a result, UST began to decrease gradually. As soon as the flash dump landed at UST, it reached $0.60.
2018
Something similar happened in 2018 when the value of the USDT dropped dramatically. I’m not sure, but it was approximately $0.88.
Stablecoin is not Secure
Obtaining UST at such a cheap cost appears to be a dream. UST is an algorithm that is part of crypto. Stable coins are new to the market, however, they are not secure.
Luna Crash
Getting a 20% APY on a stable coin is not easy. That’s why everyone’s attention is focused on them. The price of a Luna coin was $90 around 4–5 days ago. It dropped from $90 to $24 yesterday, a massive drop.
We must not forget that Terra (Luna) owns a large number of bitcoins. They can save PEG (UST-USD) by selling bitcoin.
Depend on UST
The crypto market will become more stable when UST reaches $1. The price of bitcoin will then be approximately $33000. If UST begins to collapse, bitcoin will be around $31000-$30000. Keep a close eye on the UST.
During the bear market, there has always been some reason for a crash. The same may be said for this year. UST has made an impact.
Bad News
If more bad news comes, bitcoin might go below $30000. I’m not trying to scare you, but I’m telling you what I’m seeing in the market. If the market comes to $20000 — $25000, you should be pleased since such opportunities do not arise frequently in this market.
Challenge
Investing in UST today might be dangerous. Because of UST, both Terra (Luna) and Anchor Protocol might have a massive impact on the coin’s price. Their test has now begun since it offers a 20% APY in a bear market.
Short-Term
For the time being, you can engage in short-term trading. When the market attitude degrades and the price falls below $ 30,000, it is time to leave. Exit with a slight profit, net to net, and a little loss.
I’ve mentioned excellent coins in many articles; don’t be too greedy. Just leave as soon as you get a 15%-20% profit.
SIP
I am now performing SIP on strong coins with a strong vision. I’m planning to keep it till 2024–2025. Right now, FTT, DOT, MANA, BICO, and other Low cap coins are a good choice. I’m investing a little amount in each dive. Even if bitcoin reaches $20000-$25000. I’ll keep adding to my collection.
Bear Market
Market conditions are still not favorable. Pay attention to the news today so you can understand market sentiments. Every time the market falls by 80%-85% due to unfavorable news in a bear market.
Keeping the eye on the $30000 level, if this level is broken, the market will experience an earthquake.
This is quite likely to happen this year; please share your thoughts by commenting.
Disclaimer
The content of this Article or post is Not a Financial Advice. All the information is only meant for educational purposes. I am not affiliated with any of the websites, crypto projects, or coins mentioned in this article or post.
