One of the biggest sales in the cryptocurrency market continues at full speed. Sales are increasing as Bitcoin reaches prices it hasn’t seen since 2020. Aside from the disastrous price performance, traders are having trouble with USDD and USDN stablecoins losing $1 under heavy selling pressure. Additionally, as the market continues to be traded in the red, renowned fund manager Anthony Scaramucci announced that he has invested in two altcoin projects.
Stablecoins lose their stability
Tron (TRX) and Bitcoin (BTC) backed stablecoin USDD lost its stability to the dollar this morning. Tron’s stablecoin fell 1% as investors shifted their funds to different asset classes like derivatives. Kriptokoin.com previously reviewed the increasing demand for crypto gold developed by Paxos Global following unexpected inflation data. With rising inflation, financial institutions will need to take more serious steps. As a result, the attractiveness of risky assets such as altcoins will inevitably decline.
As for stablecoins, Tron DAO and Neutrino announced that they are taking action to fix USDD and USDN at $1. Justin Sun has set aside $2 billion in funding to defend the USDD stablecoin. Accordingly, the funds will come from Tron DAO’s reserve. Neutrion, on the other hand, is preparing to scatter some of its collateral to increase the value of the USDN stablecoin.
Bitcoin and Altcoin markets bloodbath
The rise of inflation rates in the United States again above market expectations triggered a bloodbath in the crypto space. As a result, market participants’ expectations that Bitcoin and altcoin prices would rise were dashed. Immediately after the unexpected arrival of macroeconomic data, the stabilization of the stETH/ETH pair was also compromised. As it is known, stETH is the tokenized version of staked Ethereum. It is possible that the loss of stability of this asset triggered a LUNA event on the Ethereum side. Accordingly, Ether faced its own problems during the bloodbath.
Additionally, if it continues like this, ETH price is likely to drop below $1,150. If this happens, the drop in Ether price will result in the start of a liquidation chain in the DeFi space. Bitcoin price also exhibits similar bearish outlooks. At the time of writing, Bitcoin is trading at $23,628. Also, it shows no signs of a return. As for Ethereum, the second largest cryptocurrency market is trading at $1,200.
Famous fund manager bought Bitcoin and Ethereum
In the midst of all this market chaos, interesting news continues to come. It seems that despite the scandals and drop in Bitcoin and Ether price, some investors are not giving up on leading cryptos. Also, according to the latest news, famous fund manager Anthony Scaramucci has added Bitcoin and Ethereum to his basket. As a result, it became a matter of curiosity why the famous investor invested in the leading crypto and altcoin project.
