Bitcoin tumbled below $30,000 for the first time since July 2021 as investors continue to reduce their exposure to risk-based assets. The S&P 500 also reached new lows for the year as tech stocks continue to suffer amid monetary tightening, slowing growth, global conflict, inflation and more.

Against this macro backdrop, Bitcoin has performed like a large cap tech stock, down around 35% YTD. Historically, Bitcoin has been uncorrelated to equities and most other asset classes, but as we have written recently, it has begun to move in lock step with the NASDAQ. Check out an in-depth summary below, and our re-visited Bitcoin investment thesis.

Terra Luna’s stablecoin, UST, lost its dollar peg over the weekend as price dropped below $0.50 (Read Alex’s essay this week for an in-depth breakdown), sending shockwaves through many corners of the digital asset world.

Following the UST collapse, US Treasury Secretary Janet Yellen called for stablecoin legislation by year-end and said a US central bank digital currency could curb demand for non-government based stablecoins. Read more here.

Terra Luna, the blockchain on which UST was built, collapsed under the pressure, with the market capitalization tumbling from over $30 billion to less than $100 million in mere days, before finally being halted by the validators in an extremely rare and drastic move.

Alex and Andrew cover the UST breakdown and what comes next for DeFi and more in this week’s episode of DeFi Decoded.

Bitcoin miners have begun to unload cryptoassets as an alternative to raise capital, as Riot Blockchain sold $19.4M worth of Bitcoin. Simultaneously, Marathon Digital may sell its mined bitcoin for “treasury management or general corporate purposes”.

According to data from Chainalysis, 40% of Bitcoin inflows to exchanges are being driven by wallets with no institutional attribution. This indicates that retail users are ramping up capitulation.

Fairfax County, Virgina, seeks to allocate funds to yield farming after investing in crypto and blockchain. Fairfax hopes to “find a context in which to harness that volatility” by pursuing yield farming strategies. Read more here.