Bitcoin falls below $ 27,000 and hits its lowest level since December 2020, while Tether’s stablecoin peg drops by 99 cents

Bitcoin falls below $ 27,000 and hits its lowest level since December 2020, while Tether's stablecoin peg drops by 99 cents

Bitcoin (BTC) broke out of its long – term trading range on May 12 as continued sales pressure reduced markets to 2020 levels.

1 hour candle chart of the BTC / USD pair (Bitstamp). Source: Trade View

Tether moves as UST stays under $ 0.60

Data from Cointelegraph Markets Pro and TradingView showed that the BTC / USD pair has been breaking out of the range in which it has been trading since the beginning of 2021.

At the time of writing, they both had around $ 26,700 on Bitstamp, the lowest level since December 28, 2020.

The downward trend came as a fallout from the fall coin stable Terra continued to ricochet around crypto and beyond, with rumors claiming that even traditional funds were suffering from solvency issues due to losses on LUNA and UST.

“People have not received it yet, but it’s time for Lehman to make cryptocurrency.” We hear about many funds that may have been insolvent due to Luna’s collapse. – Frank Chaparro (@fintechfrank) May 12, 2022

LUNA, the Tether signal, was almost capitalized in value terms at the time of this writing, trading at around $ 0.22. At the beginning of May, the LUNA / USD pair was trading at $ 80.

Day candle chart of LUNA / USD (Binance) pair. Source: Trade View

The UST, which Terra executives currently focus on restoring its pins to the US dollar, was about $ 0.60, still far from $ 1, but more than double the weekly high.

One hour candle chart of the UST / USD (Coinbase) pair. Source: Trade View

However, tensions were becoming more visible in the cryptocurrency market as the largest stablecoin, Tether (USDT), began to show itself signs of worry that it was copying the fall of the UST.

At the time of writing, the USDT / USD pair was worth less than $ 0.99 on major exchanges.

Commenting on the stability of the system, Tether Chief Technology Officer Paolo Ardoino said USDT withdrawals were in full swing.

“More than 300 Million redeemed in the last 24 hours without a drop of sweat”, can we read as part of tweet.

One hour retention chart of USDT / USD (Bitstamp). Source: Trade View

Data from blockchain analytics firm CryptoQuant added that record stable coin outflows are seen on large exchanges.

Graph of stablecoin outflow at exchanges. Source: CryptoQuant

$ 1.22 billion was liquidated in 24 hours

Regarding the loss of the macro range baseline created in January 2021, analysts were always ready to consider current levels as a potential opportunity.

Read also: Activate Ethereum Whales as High Level Hit Transactions Since January

“Whatever you lose in a deteriorating macro, you get a multiple of it back in a macro trend. All you have to do is pay attention to the markets when they are ultra bearish, ”he said supported popular trader Rekt Capital.

A previous tweet, from May 11, highlighted the macro range.

If #BTC loses this green area in support… It will be a confirmation that $ BTC will enter a multi – month downturn #Crypto #Bitcoin – Rekt Capital (@rektcapital) May 11, 2022

The amount of losses was reflected in market sales. Data from the blockchain monitoring resource Coinglass, for bitcoin and altcoins combined, show that these liquidations exceeded $ 1.2 billion in the 24 hours prior to this writing.

The views and opinions expressed herein are those of the author only and do not necessarily reflect the views of All investments and trading operations involve risk. You should do your own research before making a decision.

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