The abolition of the UST peg caused the LUNA spiral to fall into a vicious circle of devaluation. Additional LUNA was released to restore pegging to the UST, creating downward pressure on prices, while LUNA’s supply increased to 6.5 trillion. In an effort to support the UST, Luna Foundation Guard (LFG) has liquidated most of its bitcoin cash reserves, from 80,000 BTC to 313 BTC. Unfortunately, this has had little effect on UST support. As a result, it is unlikely that the Terra ecosystem can be saved without the help of external capital. Changpeng Zhao, CEO of Binance, said he would support the Terra community, but would like to see more transparency from that organization. Following the recent events of LUNA and UST, many exchanges have decided to exclude LUNA from the list indefinitely.
Looking at the price action of bitcoin, we found support above $ 29,000 (an increase of 18% from the extreme lows). The weekly closing of the BTC kept the $ 29,000 level in the short term as key support. A weekly close below the $ 29,000 support region may indicate a further decline, however, if the price holds that support region, we can expect a sideways consolidation for the entire cryptospace in the coming weeks.
Over the past 2 weeks, the over-the-counter TrigonX has seen record trading volumes amid high volatility in the markets. During this time, TrigonX was one of the very few OTC trading offices that provided customers with round-the-clock institutional prices on UST and LUNA against various currencies and coins. In addition to being one of the only OTC bureaus that provide pricing, we have been able to provide customers with a high level of liquidity as well as fast settlement times in all major fiat currencies.