Bitcoin broke through last year’s lows on Wednesday amid the collapse of the Terra ecosystem. Levels in the $29,000 region have provided multiple support in 2021. Bitcoin fell 8.4% on Wednesday, ending the day around $28,400. Ethereum lost 12.5%, other top ten altcoins fell from 15.7% (Binance Coin) to 33.4% (Solana). Bitcoin resumed its decline along with US stock indices. BTC broke through the lows of July last year and tested the lows since the end of December 2020 just above $28,000. Pressure on all risky assets was exerted by inflation data in the United States, which came out better than expected. The head of Galaxy Digital Mike Novogratz believes that the crypto market has not yet reached the bottom. The correlation between BTC and the falling stock market will intensify until bitcoin can reach an equilibrium point. According to CryptoQuant, hodlers have sold some of their bitcoins. Investors who hold BTC for more than a year bring it to exchanges for sale during the last month. Altcoins fell sharply against the background of the collapse of Terra (LUNA), which lost 97% due to the drawdown of the stablecoin UST. UST itself, the algorithmic stablecoin of the Terra ecosystem, again lost its peg to the US dollar on Wednesday. Costing $1 at the beginning of the week, UST fell to $0.30. According to The Block, attempts by the Luna Foundation Guard (LFG) to raise funds to stabilize the UST stablecoin have failed. The US Federal Reserve has published a semi-annual report on financial stability, in which it once again emphasized the risks of using stablecoins. Representatives of the Democratic Party on the US Senate Banking Committee criticized the loyalty of Republicans to digital assets and proposed increased oversight of cryptocurrencies, including stablecoins. The CEO of the Kraken crypto exchange, Jesse Powell, would like Bitcoin to fall to $20,000. In this case, he would direct the lion’s share of his capital to buy BTC. Crypto exchange Coinbase reported a loss of $430 million for the first quarter of this year against the backdrop of a fall in the crypto market. Source: FXPro

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