Crypto News on May 10: Bitcoin Battles to Stay Above $30,000

2022/05/11By:

The crypto markets are looking pretty grim indeed. Read the latest crypto & bitcoin news below for more information.

 

UST Stablecoin Implodes and Falls to $0.68 

TerraUSD has lost its peg to $1 — plunging to lows of $0.68 at one point. While UST is starting to move upwards, it’s far from stable at the moment. The algorithmic stablecoin has been thrown into chaos — and billions of dollars worth of Bitcoin held as collateral is now being liquidated, adding to selling pressure. There’s a bigger problem on the horizon. LUNA, another altcoin in the Terra ecosystem, has plunged by more than 50% in a little under eight hours. In normal times, traders are meant to be able to swap their UST stablecoins for LUNA. But this crash has meant UST now has a larger market cap than LUNA, creating a real risk of a bank run.

 

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Bitcoin Battles to Stay Above $30,000

Bitcoin dipped to lows of $29,944.80 in the early hours of Tuesday. At the time of writing, it has bounced back — reaching $32,500 hours later. We could see further, painful tests of $30,000 in the coming days, especially if Wall Street continues to tumble. Stock market futures were in positive territory as of Tuesday morning. Monday’s stock market slide left the S&P 500 at its weakest level since March 2021 — and there seems to be no end in sight. Gloom may be further exacerbated when Coinbase steps up to deliver its first-quarter financial results later on Tuesday.

 

MicroStrategy‘s Bitcoin (Briefly) Swings to Loss 

At one point, MicroStrategy was sitting on billions of dollars in paper profits. But now, all of this has evaporated — leaving Michael Saylor in a potentially precarious position. MicroStrategy owns 129,218 BTC — and on average, the business intelligence firm has paid $30,700 for each of these coins. Bitcoin’s dip to $29,944 meant that, for the first time since its acquisition spree began in August 2020, the company’s entire BTC holding was underwater. MicroStrategy’s share price plunged by 24% on Monday — and Saylor is attempting to put a brave face on things by dusting off an old meme of him working at a McDonald’s.

 

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NFTs Are Also Coming to Facebook

Mark Zuckerberg has confirmed that non-fungible tokens are going to start being tested on Instagram this week. In a new video, Meta’s CEO also revealed that “similar functionality is coming to Facebook soon” too. This is an especially significant development — not least because Facebook had an estimated 2.91 billion monthly active users as of January 2022. Zuckerberg also revealed that he wants to focus on “3D NFTs” — with collectors getting the chance to use augmented reality to project digital art onto physical spaces.

 

El Salvador Buys Another 500 BTC 

El Salvador may be in a state of emergency right now, but it appears that Nayib Bukele is still keeping a close eye on the price of bitcoin. The president confirmed on Twitter that the Central American country just purchased an additional 500 bitcoins at an average price of $30,744 per token. Overall, that’s worth more than $15 million – while at the same time, the country’s other BTC investments are still in the red. As the price of bitcoin rallied on Tuesday, Bukele tweeted, “I could sell these coins right now and make almost a million dollars in just 11 hours, but of course not.”

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