that the second halt was intended to enable them to “come up with a plan to reconstitute” the network. Both TerraUSD , the algorithmic stablecoin that lost and never regained its 1-1 peg to the US dollar, and the associated Luna token were trading near zero at the time of the second halt.
It’s a remarkably more positive picture from the havoc that overtook crypto markets on Wednesday as UST entered a “death spiral”. That day, Bitcoin had suffered a nearly 10% drop.“The fact that Tether is stabilising means that the margin calls that took place are fading,” said Matt Maley, chief market strategist at Miller Tabak + Co. “Whenever you get forced selling in anything, it overshoots. People are still nervous, but the selling has abated.
“Crypto has little economic significance. Not that many people own much of it,” said Brian Nick, chief investment strategist at Nuveen. Still, he added that the crypto market is being swayed by the same forces that are affecting equities right now.