Bitcoin News on May 11: A Difficult Time for Crypto Investors
The Future of Bitcoin Remains in Jeopardy
The world’s largest cryptocurrency plunged to a low of $29,323.23 on Wednesday afternoon — but later rebounded to over $31,000. It suggests that Bitcoin won’t meaningfully fall below $30,000 without a fight. Following closely on the heels of the U.S. inflation data, the Consumer Price Index rose 8.3% in April. While this is a slight improvement on the 8.5% recorded in March, it’s still close to 40-year highs. Bloomberg Intelligence analyst Mike McGlone believes Bitcoin may fall below $30,000 if the stock market continues to fall. However, he believes BTC will eventually “come out ahead”.
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Terra’s Terror: UST and LUNA Collapse
The UST stablecoin’s violent depeg from the U.S. dollar has gotten worse. It fell to lows of $0.29 — far below its target of $1. And LUNA, which until recently was one of the 10 biggest cryptocurrencies by market cap, has been obliterated. The embattled altcoin plunged to lows of $0.83 before — down over 95% — but had rebounded slightly at the time of writing. Such a plunge is unprecedented for a major altcoin, and it’s crazy to think LUNA was worth $32.53 just 24 hours ago. Terra‘s co-founder Do Kwon has been criticized after falling silent for almost 24 hours as the crisis worsened. Efforts are underway to help UST return to $1 — and this will include minting and selling new LUNA tokens. But it may be too little, too late.
Elon Musk Wants to Unblock Trump
And in other news, Elon Musk has said he would unban Donald Trump if he succeeds in acquiring Twitter. He described the social network’s decision to permanently suspend the former president as “morally wrong and flat out stupid.” But given Trump has announced he wouldn’t return to Twitter even if his account is reinstated, it might not make a difference. Musk reiterated that he believes permanent bans should be extremely rare and used only for bots or scam accounts. Speaking at a Financial Times summit, he expressed hope that his $44 billion deal to buy Twitter will be completed in the next three months.