Is The Crypto Market Dead
.jpg "Is The Crypto Market Dead")
The crypto market has been in absolute chaos Over the past few weeks.
Crypto investors have lost more than $800B, and analysts are comparing this to the stock market
crash of 2008
Bitcoin, the world's largest cryptocurrency, has fallen by 50% in 6 months, and 25% in the last month itself. Ethereum is down 30% in 1 month.
So what's the reason behind this mayhem?
1. Macro
The whole world is in turmoil right now.
Wars and pandemics have sent inflation soaring, to counter which central banks are hiking rates and
pulling money from the markets This has caused all asset classes like stocks to tumble and not just crypto.
But something has happened in the crypto world which has induced even more panic.
A Black Swan event
2. Terra Luna Crash
LUNA, a coin on the Terra blockchain, was once the 4th most valuable cryptocurrency (after BTC, ETH and USDT).
In 7 days, its price has fallen from $60 to $0.0003 LUNA has lost-99.999% of its value. In layman's terms, it's worth absolutely nothing
But why? Well, the reason is complicated, but it's linked to UST, a stablecoin on the Terra blockchain
A stablecoin is a cryptocurrency whose value is pegged to an actual currency.
For example, 1 UST=1 USD. The company behind the stablecoin ensures that this equivalence is maintained But last week, due to reasons still unknown, UST started falling below $1. AS LUNA was strongly linked to UST, it fell too.
Today, UST sits at $0.20, LUNA iS no more, and thee crypto world is shocked
So what should you do?
The Terra Luna crash is an individual event, it doesn't represent the whole crypto market.
Holding and not giving into the prevailing panic is ideal, if you believe in the value cryptocurrencies
provide
Crypto investors have lost more than $800B, and analysts are comparing this to the stock market
crash of 2008
Bitcoin, the world's largest cryptocurrency, has fallen by 50% in 6 months, and 25% in the last month itself. Ethereum is down 30% in 1 month.
So what's the reason behind this mayhem?
1. Macro
The whole world is in turmoil right now.
Wars and pandemics have sent inflation soaring, to counter which central banks are hiking rates and
pulling money from the markets This has caused all asset classes like stocks to tumble and not just crypto.
But something has happened in the crypto world which has induced even more panic.
A Black Swan event
2. Terra Luna Crash
LUNA, a coin on the Terra blockchain, was once the 4th most valuable cryptocurrency (after BTC, ETH and USDT).
In 7 days, its price has fallen from $60 to $0.0003 LUNA has lost-99.999% of its value. In layman's terms, it's worth absolutely nothing
But why? Well, the reason is complicated, but it's linked to UST, a stablecoin on the Terra blockchain
A stablecoin is a cryptocurrency whose value is pegged to an actual currency.
For example, 1 UST=1 USD. The company behind the stablecoin ensures that this equivalence is maintained But last week, due to reasons still unknown, UST started falling below $1. AS LUNA was strongly linked to UST, it fell too.
Today, UST sits at $0.20, LUNA iS no more, and thee crypto world is shocked
So what should you do?
The Terra Luna crash is an individual event, it doesn't represent the whole crypto market.
Holding and not giving into the prevailing panic is ideal, if you believe in the value cryptocurrencies
provide
Comment your suggestion regarding crypto currency !!
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