On the bright side, somehow bitcoin didn’t completely collapse. Over 80,000 BTC from that almost $4 billion treasury was potentially sold (we can’t yet confirm if the bitcoin was actually sold, but it was sent to exchanges) during the mad dash to get UST back to $1. That caused a price reaction, sure, but then again, the broader crypto market sold off because bad things were happening to a big crypto project (LUNA was once the 10th most valuable cryptocurrency). Add on the tenuous macroeconomic environment and general risk-off sentiment in the market, and it feels almost impossible that bitcoin still boasts a market cap of over $500 billion.
The Collapse of UST and LUNA Was Devastating, but There Is Still Hope for Crypto
