Terra Usdt vs BTC price corellation | Bitcointalksearch.org

lionheart78

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I don't think that there is a connection between Terra UST and Bitcoin price. If they do then we should have seen BTC crashing 90% of its value, but no, rather we witnessed BTC trending sideways. People love to make a connection between things so it isn't a surprise that they will connect BTC price to the current issue of Terra UST but I think it isn't plausible because BTC is independent of the Terra Market.

Quote from: Upgrade00 on May 16, 2022, 05:55:32 AM

I stopped paying attention to the post and indeed the article when they talked about "experts". This seems to just be a word media channels throw around to give credibility to unfounded assumptions or to refer to channels with large following.

It is normal, the media channels loves to exaggerate things and oftentimes overestimate themselves.

btc_angela

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Quote from: Majestic-milf on May 16, 2022, 05:43:37 AM

This could pose a challenge to new investors as they might prefer to wait till there is a semblance of order. But then, will there ever be an order??

On the contrary, this might be a good entry point specially if you are a newbie. You don't want to catch when the price is going up. So maybe this is a perfect opportunity for them.

As for the order, there won't be any in crypto, as we have said it is very volatile. The thing is that we must always embrace it, learn how to go and play with chaos and again, take advantage of it.

Nhazwrath

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imho

My logic =. With the number of institutional investors becoming involved with bitcoin within the last 2 years.. The fiat/bitcoin price has simple become more visibly attached to the stock market due to nature of how institutional investors look at stocks. Therefore the fear/greed/bulls/bear action is easier to see.

Is it a concern? That answer depends on what you are trying to achieve. The simple answer is yes. The not simple answer is no. depends on short or long outlooks.

Since the stock market Looks like its in longer tread downward... everything is down.

NeuroticFish

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Quote from: mk4 on May 17, 2022, 02:06:19 AM

Probably(?) unpopular opinion: a BTC-backed stablecoin could probably work sometime in the future(definitely not any time soon), as long as the backed BTC is over-collateralized by like 200% or more as to significantly lower the risks.

Maybe it could work sometime in the future only if we get to the point bitcoin falling doesn't get all crypto markets fall (even if not in the same second or day).
And even then, collateralizing a crypto currency with another crypto currency looks more like an unhealthy speculative stunt than a professional approach. Maybe in a not-too-near future this will change, but I wouldn't get my expectations too high.

mk4

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Quote from: DapanasFruit on May 16, 2022, 10:13:23 PM

One of the many thing I learned while in cryptocurrency market is that for many times Bitcoin can fall for no big reason at all and when the market can find one then surely things will start to dump. The only reason why there seems to be some correlation between the downward spiral of BTC is that it was being used as one of the cryptocurrencies backing up Terra's UST. And this can be a big lesson here: never make a volatile asset including Bitcoin as one of your stablecoin's back-up assets because you are just making things complicated and just like what recently happened you are dragging the whole market with you...certainly a negative impact that is already recorded in the crypto books.

Probably(?) unpopular opinion: a BTC-backed stablecoin could probably work sometime in the future(definitely not any time soon), as long as the backed BTC is over-collateralized by like 200% or more as to significantly lower the risks.

SpenserReed

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Quote from: DapanasFruit on May 16, 2022, 10:13:23 PM

And this can be a big lesson here: never make a volatile asset including Bitcoin as one of your stablecoin's back-up assets

Or maybe use the only amount that you can "invest and forget"? Cool

DapanasFruit

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One of the many thing I learned while in cryptocurrency market is that for many times Bitcoin can fall for no big reason at all and when the market can find one then surely things will start to dump. The only reason why there seems to be some correlation between the downward spiral of BTC is that it was being used as one of the cryptocurrencies backing up Terra's UST. And this can be a big lesson here: never make a volatile asset including Bitcoin as one of your stablecoin's back-up assets because you are just making things complicated and just like what recently happened you are dragging the whole market with you...certainly a negative impact that is already recorded in the crypto books.

pooya87

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Historically whenever there is a massive shitcoin dump that is covered in the media a lot, bitcoin price has been affected by it. That still doesn't create a correlation between bitcoin price and shitcoins specially centralized ones. After all we are seeing a market with many weak hands waiting for an excuse to make an irrational decision.
In case of Terra it was a combination of both panic sell and their liquidation that helped the already falling price to go a tiny bit lower.

tranthidung

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Usually we have Bitcoin fall first then altcoins. This time, it is oppositely because the de-peg of $UST forced Luna Foundation Guard to almost instantly sold most of their Bitcoin in their reserve that caused massive panic sell on Bitcoin.

The failure rescue to re-peg $UST in turn caused a domino effects on other altcoins because there are many altcoin ecosystems have relation to Terra ecosystem at different extent.

Anyway, Bitcoin again shows its strong survival because even Luna Foundation Guard dumped a lot of Bitcoin (and others dumped after that), Bitcoin is still able to maintain its price around $30,000.

From 80,394 BTC to 313 BTC in a failed attempt to rescue $UST peg.

Slow death

legendary

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well I think people are looking for all sorts of justifications about this price drop because they don't want to accept that the price will always fall when there aren't many buyers and there are many sellers, if we look at the world today we can easily see that because of Russia having invaded ukraine and many countries have imposed sanctions on russia, markets are falling and bitcoin would not be the only one that would be safe from falling prices. what people need to do right now is to follow the credible news and not get excited thinking that buying a lot of bitcoin for this price will make a lot of money fast because the price will soon go up, we can't be fooled, nothing guarantees that the price can't fall for the $10,000

AmoreJaz

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Quote from: YOSHIE on May 16, 2022, 11:44:49 AM

Quote from: mk4 on May 16, 2022, 10:57:41 AM

There is no correlation between Terra/UST and bitcoin. Bitcoin only dropped because:

Makes sense, I agree with that, there is no correction.

OP, Bitcoin users always say, Bitcoin goes up and down the biggest influence the main factors are: influenced by trading volume, the amount of selling is greater than buying, @NeuroticFish, already said and read on Twitter 80k Btc, flown without direction.

Terra's problem, @Do Kwon's individual problem must be responsible for this phenomenon, @cz_ warned this before it happened, but @Do Kwon didn't heed it, the result is fatal, all investors fall apart, for that it has nothing to do with Bitcoin vs. Terra and there is no correction, what needs to be corrected is Terra not with Bitcoin, who have to correct with Terra and @Do Kwon, if they want to do well in the future.

people are correlating it to something visible and right now, the failure of Terra is the hot topic in the crypto community. but on the other hand, btc's drop in price is owed to varied reasons, but i also don't think Terra's collapse is the major reason behind it. because we are already going down to 30k level before this Terra's fiasco came to light. anyway, everyone can correlate btc's price market to anything they want. at the end of the day, we all know, the price in the market is the combination of the market sentiments and all the other things added to it. hard to pinpoint a major factor of btc's movement up until now because there's really no single reason behind it.

YOSHIE

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Quote from: mk4 on May 16, 2022, 10:57:41 AM

There is no correlation between Terra/UST and bitcoin. Bitcoin only dropped because:

Makes sense, I agree with that, there is no correction.

OP, Bitcoin users always say, Bitcoin goes up and down the biggest influence the main factors are: influenced by trading volume, the amount of selling is greater than buying, @NeuroticFish, already said and read on Twitter 80k Btc, flown without direction.

Terra's problem, @Do Kwon's individual problem must be responsible for this phenomenon, @cz_ warned this before it happened, but @Do Kwon didn't heed it, the result is fatal, all investors fall apart, for that it has nothing to do with Bitcoin vs. Terra and there is no correction, what needs to be corrected is Terra not with Bitcoin, who have to correct with Terra and @Do Kwon, if they want to do well in the future.

mk4

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There is no correlation between Terra/UST and bitcoin. Bitcoin only dropped because:

1. Terra's LFG has billions worth of BTC on their balance sheet, and they had to quickly liquidate it in the hopes to save the UST peg (they failed)
2. Bitcoin, the entire cryptocurrency space, and even most assets in general, have already been on a downtrend even before the Terra fiasco
3. Correlation is not causation

DaveF

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There you go assuming they actually had the BTC and other coins to sell.
And if they did have anything to sell they actually put the money into anything other then their pockets.

Quote from: NeuroticFish on May 16, 2022, 07:01:23 AM

Quote from: Majestic-milf on May 16, 2022, 05:43:37 AM

Terra Usdt which is one of the largest stable coins in the market

USDT is Tether USD, and afaik that one's the largest stablecoin, dwarfing all the rest.
Terra's coin is UST, afaik.

UST was their coin, had an almost irrilevent market share. And most people think it was false anyway.
As for other stable coins, USDC which is the Coinbase and Circle and a few other peoples stable coin is about 30% smaller then USDT but from what I can tell people trust it more. (I don't trust any of them but that's just me)

-Dave

crwth

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I know that Terra and Luna have needed some savings and caused the sale of Bitcoin, causing the price to crash. That's the downside when the assets are dependent on keeping the price stable 1:1. The attacker has flooded the market and made it so that the investments in pools will get unlocked, and since it's pegged and dependent on BTC price, it needed to sell off some BTC to keep it balanced. A more significant amount of money has flooded the market and then dumped it all.

It's easy to profit for the attacker, that's for sure. I know it's estimated to have $800m of gain.

Upgrade00

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Quote from: NeuroticFish on May 16, 2022, 07:01:23 AM

I've just read on twitter something I didn't know, and I guess you too; this mess did cause BTC price go down simply because Luna owner has sold 80k BTC:

Quote from: ilovealtcoins on May 16, 2022, 08:00:36 AM

I read that news some hours ago and how I see it;

The news of the 80kBTC sale was announced today or that's when I saw it (not sure) and so far the price of Bitcoin has not changed much, not nearly enough to be analyzed and linked to an announcement from LUNA.
The sale was also said to have taken place over the weekend, during which time Bitcoin rose from approximately $26k on Thursday to $31k today.

ilovealtcoins

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Quote from: Upgrade00 on May 16, 2022, 05:55:32 AM

I stopped paying attention to the post and indeed the article when they talked about "experts". This seems to just be a word media channels throw around to give credibility to unfounded assumptions or to refer to channels with large following.

Bitcoin does not have a dependent correlation with Terra USDT and a drop in the latter would not have an effect on the former. Price drops would be for a variety of reasons some of which were listed in the article.

There are many reasons for the market drop but the recent drop I think has a lot to do with terra. Bitcoin is not affiliated with any terra, but ust is backed by bitcoin and many other altcoins. If everything is exactly as terra lab says they have sold over 80k bitcoins to try to keep the ust price, then bitcoin's price drop is understandable.

Pmalek

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Quote from: NeuroticFish on May 16, 2022, 07:01:23 AM

I've just read on twitter something I didn't know, and I guess you too; this mess did cause BTC price go down simply because Luna owner has sold 80k BTC:
https://twitter.com/BTC_Archive/status/1526155378584584192

I heard about that during the weekend. When UST started losing it's peg to the USD, the Luna Foundation Guard started selling off their reserve assets in an attempt to stop the breakdown and try to salvage the situation. As you can see from this photo in one of the comments on that tweet you linked to, LFG confirmed earlier in May that they owned 80.394 BTC.

Dunamisx

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Quote from: Majestic-milf on May 16, 2022, 05:43:37 AM

With the price of BTC going down, many crypto experts have come up with different reasons they feel are factors responsible for it's downward slope. Chief amongst those factors is the trending Terra Usdt

Why all the gridlocks being attributed to terra luna by the way, i could recall on several occasions earlier this year that there have been news around on bitcoin whales alert and the activation of a old time wallet for a transaction with having a large amount worth of btc, some claim Luna founder release the bitcoin in his possession, shitcoins and the likes but am not moved by all because these were mere news, bitcoin will fall and still rises all by itself because of volatility in demand and supply.

Quote from: NeuroticFish on May 16, 2022, 07:01:23 AM

I've just read on twitter something I didn't know, and I guess you too; this mess did cause BTC price go down simply because Luna owner has sold 80k BTC:

I don't know how true this might have been but i think a single whale released shouldn't make a significant change in price to this extent, but either of the way there must have been an excess supply to have created a low demand whereby the price dropped drastically, this shouldn't as well be a long time dip, this new week might comes with something different.

NeuroticFish

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Quote from: Majestic-milf on May 16, 2022, 05:43:37 AM

Terra Usdt which is one of the largest stable coins in the market

USDT is Tether USD, and afaik that one's the largest stablecoin, dwarfing all the rest.
Terra's coin is UST, afaik.

Quote from: Majestic-milf on May 16, 2022, 05:43:37 AM

BTC to USD= 29,678.90 as of time of writing, but many believe and are expectant that it will rise, after all volatility is every where

We are at the middle of a 4-year cycle. The price was not looking neither stable nor very peachy anyways, this failed altcoin/scam was just the cherry on the top of the cake.
And yes, the price will indeed rise.. eventually. But actually none of those "experts" (lol) know, they just speculate (i.e. throw numbers, trying to guess).

Quote from: Majestic-milf on May 16, 2022, 05:43:37 AM

Other factors which they believe seem to threaten the balance for BTC are the surging inflation, lagging recovery in the job market, the COVID-19 pandemic in the US amongst others.

Also they forgot to take into account the death of the dinosaurs, the extraterrestrial live and El Nino.

Quote from: Upgrade00 on May 16, 2022, 05:55:32 AM

Bitcoin does not have a dependent correlation with Terra USDT and a drop in the latter would not have an effect on the former. Price drops would be for a variety of reasons some of which were listed in the article.

I've just read on twitter something I didn't know, and I guess you too; this mess did cause BTC price go down simply because Luna owner has sold 80k BTC:
https://twitter.com/BTC_Archive/status/1526155378584584192

Topic: Terra Usdt vs BTC price corellation (Read 340 times)