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Saw its lowest level: ‘blood loss’ in cryptocurrency

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In addition to the flurry of the stablecoin TerraUSD, which has been effective in the crypto asset markets for a few days, the blood loss that started with the US inflation, which exceeded the expectations, lost the risk appetite, continues.

According to the news of BloombergHT, Bitcoin, which fell below 30 thousand dollars in a rapid form after the disclosure of the information, tried to rise above this level again, but could not hold on and tested below 28 thousand dollars Thus, Bitcoin saw the lowest level since January 2021.

Bloomberg Opinion author crypto investor Aaron Brown stated that the collapse of TerraUSD (UST) negatively impacted confidence in all liquidity protocols. This is one of the factors that lead to the fragile trust in the crypto asset market.

Brown commented, “If the UST doesn’t recover, presumably Aave won’t either. It’s like when Bear Stern collapsed, people turned their attention to whether Lehman would collapse.”

The foundation behind UST sought $1.5 billion in funding, while UST traded in between 20 cents and 90 cents. But it could not reach parity with the dollar now.

UBS Currency and Crypto Research Manager James Malcolm said that the 30 thousand dollar region for Bitcoin is a particularly sensitive region, this is a level where the mining economy turns negative, and if this level is broken, there will be less crypto sales to the market.

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