The currency that caused bitcoin to fall below $ 35,000

The Terra Foundation, which many crypto enthusiasts have supported at least through constant bitcoin purchases over the past months, may be responsible for such a rapid decline in the bitcoin rate.

The UST stablecoin, which runs on the Anchor protocol, has been experiencing problems over the past day. Recently, the protocol changed its approach to calculating rewards for the money stuck, and therefore users began to massively withdraw assets from the protocol due to a decline in profits — more than $ 2 billion was withdrawn in 2 days.

It was for this reason that stablecoin briefly lost its peg to $ 1, which is why the Terra Foundation decided to sell some of the bitcoin stocks they had been accumulating to stabilize it. Such a large amount of bitcoins on the market led to an even greater drop in the rate of the No. 1 cryptocurrency, which is already experiencing difficult times.

At the time of writing, the value of bitcoin is $ 34,500.