On May 12, Bitcoin (BTC) broke out of its long-term trading range, with markets falling to levels seen in 2020.
BTC/USD departed the range in which it has moved since the beginning of 2021, according to data from Cointelegraph Markets Pro and TradingView.
On Bitstamp, the pair was trading around $26,700 at the time of writing, its minimum since December 28, 2020.
The drop came as the aftermath of the Terra collapse began to reverberate across crypto and beyond, with claims circulating that professional funds had solvency concerns due to losses on LUNA and TerraUSD (UST).
At the time of writing, LUNA, Terra's native coin, has almost completely lost value, trading at roughly $0.22. LUNA/USD was trading at $80 at the beginning of May.
UST was trading at about $0.60, still a long way from $1.00 but more than double the week's lows.
Nonetheless, the pressure was becoming more obvious across crypto, with Tether (USDT), the largest stablecoin, beginning to show troubling signals that it was following UST's demise.
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USDT/USD was under $0.99 on key exchanges at the time of publishing.
Tether chief technical officer Paolo Ardoino commented on system stability, saying that USDT withdrawals continued normally.
">300M redeemed in the previous 24 hours without breaking a sweat," one tweet stated.
According to data from on-chain analytics firm CryptoQuant, major exchanges have seen historic outflows of stablecoins.
Chainalysis, a blockchain intelligence business, has received $170 million at an $8.6 billion value, up from $4.2 billion in June last year.
Given the recent market crisis, which saw bitcoin fall below $30,000 on Monday, many speculated that the rush of investors who backed crypto businesses last year would end. However, Chainalysis' valuation has doubled in the most recent round, indicating that investors continue to embrace crypto firms.
GIC, a Singapore-based sovereign wealth fund, led Chainalysis' Series F fundraising round. According to media reports on Wednesday, it's also a current investor in the firm, citing an anonymous source.
Dragoneer, Durable Capital Partners, Blackstone, Sequoia Heritage, 9Yards Capital, Altimeter Capital Management, and SVB Capital were among the other investors in the newest round.
Last June, the firm secured $100 million in Series E funding led by Coatue Management with a valuation of $4.2 billion and another $100 million in Series D funding at a valuation of over $2 billion in March 2021.
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Benchmark, Accel, Paradigm, and Coatue invested $336 million in Chainalysis before the newest round.
