Bitcoin is falling free. It was pushed back to the 26,000-dollar level due to the shock from Korea’s Terra.
As of 3:30 p.m. on the 12th, Bitcoin plunged 12.40% from 24 hours ago to 26,641 dollars on CoinMarketCap, a global coin market relay site. It is the first time since December 2020 that Bitcoin has been pushed back to the $26,000 level.
Until the morning that day, Bitcoin remained at the $28,000 level. However, the fall has been increasing further in the afternoon.
Bitcoin is also plunging as Terra USD (UST), a stable coin issued by Korea Terra, plunged.
Cryptocurrency around the world is plunging all at once after the “bank run” (a phenomenon in which depositors flock to withdraw deposits) occurred, with UST issued by Korea Terra once plunging 70% and sister coin Luna plunging 95%.
Terra has bought about $3.5 billion worth of Bitcoin so far to maintain the value of UST and Luna. Terra planned to increase its bitcoin holdings to $10 billion. Bitcoin is held as a reserve.
However, as Terra Run (Tera avoidance phenomenon) occurred due to doubts about UST, and prices plunged, concerns are rising that Terra may be selling Bitcoin in large quantities to maintain the value of UST.
As a result, Bitcoin prices are plummeting. Not only Bitcoin, but all major cryptocurrencies are plunging, with Ethereum, the second-largest market capitalization, plunging 22%.
At the same time, Bitcoin is also trading at 38,231,000 won on Upbit, a Korean trading site, down 5.05% from 24 hours ago.
