Steemit Crypto Academy Contest / S1W4 – Reviewing the Instability of the Crypto Market by @deepak94

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Hello everyone Nmaste, I am very glad to be taking part in the third week of the SteemitcryptoAcademy engagement contest.

Inside India, if we talk about the market, we are talking about the crypto market, stock market and you talk about any market, whether it is the real estate market, there has been uncertainty everywhere, due to which people are confused and Keep or withdraw money in your trading platform. On the other hand more than 1,00,000 covid cases have started coming inside India.

What all the traders are thinking that if it is locked down again, then this is not a big thing, people have doubts, so many people are doubting whether the market will be stable or not. There are traders too, they are withdrawing their money. Due to this uncertainty of the market and due to the increasing cases of covid, people are gradually fearing that the third wave is not coming. Example: In many states, you see weekend lockdown happening inside Delhi, so people here are guessing that there may be a complete lockdown in the coming days, so maybe this could be the reason why people take out his money.

Bitcoin fell under around $26,000 in the past few days. According to various reports, over $200 billion has been sold in the entire crypto market. Investors are withdrawing from investing in cryptocurrencies at such times. Because in the last few days, as I mentioned above , we see cases of covid not only in India but also in the whole world and in the last few days the US inflation data has shown a 8.3% jump on the prices of goods and services in April which That's more than expected. I think this could be also one of the reason behind.

This is not the first time that crypto has fallen so much, even before this there has been a lot of volatility in crypto. We can see that last three months when the Defense Central Bank of Russia suggested that crypto should be banned in Russia and the reason given that due to cryptocurrencies, financial stability and financial security and financial safety of citizens are affected.

In recent days, the Indian stock market closed with a fall of 4% in the week ended May 6, 2022, while the prices of crypto currency have continued to fall for the last few days. But you must be thinking that how America is behind this, so let's understand the logic of this, in fact last week the US Federal Reserve Bank has increased the key interest rates by half a percent i.e. 0.5 percent to prevent inflation in the year 2000. This is the biggest change since the Federal Reserve's hike in interest rates means more interest is charged from consumers and businesses, as the rise in lending rates in the US will also affect mortgaged security credit cards and auto loans. Announced to raise interest rates after 22 years, due to which deliveries to US citizens and businesses will be more expensive, people's spending ability will be affected According to Reserve officials, the decision to bring interest rates to such a level. efforts are being made to To bring stability in the economy, the effect of increase in interest rate in America is also seen on the countries of Asia and Europe including India. Raising interest rates by the US Fed affects the availability and cost of foreign funds for Indian companies indirectly. Impact on foreign portfolios in Indian equity and bond markets Global investors borrow in currencies with zero or low interest rates to invest in assets around the world. As interest rates rise, due to global selling, the carry trade is reversed, to prevent this, RBI has to increase interest rates in India, apart from this, there are many economic criteria, due to which the Reserve Bank has also increased interest rates in India. The Reserve Bank of India has increased the repo rate from 4% to 4.40%, as well as decided to increase the cash reserve ratio ie CRR by 0.50 percent.

RBI and FIT both have increased their interest rate, not only here central bank is increasing its interest rate everywhere why are they increasing it because now inflation rate has become a very big issue call and people withdraw their money from the market in the bank Because they get more interest we can see that whenever interest rate rises to market definitely falls and if interest rate decreases market will shoot up.

• How long do you think it will continue in this downtrend.
  

Take the last few days, the market has fallen heavily in the last few months and is now in its oversold zone. I read the chart of bitcoins to see that the market is taking pullbacks for a few days and with the help of our RSI indicator and fibonacci indicators found that we can see higher levels in the market in few days.

Because whether the market or the person goes always up.
I have read the chart on the time on 1 day time frame.

On weekly basis i just draw a support line where we saw a chance to good buying area.

First of all we will know how trading volume is and how it is calculated. Trading is nothing but the sum total of the inflow and outflow of capital on a crypto currency over a given period of time. When a trader buys or sells stocks or cryptos with the help of different exchanges, the volume generated is how many people buy and sell in that given time period.

We see a significant drop in cryptocurrencies over the past few days, but we see a drop in bitcoin but no volume loss. According to me this happened because many traders were taking their profit by selling and many buyers started making their positions because they were getting the price of bitcoin at the right price.
For this reason so many people buy bitcoin at low price and keep it as their position so we see that volume effect in bitcoin is not much.

This can be justified by the little bit drop in price in the value of USDT(Tether) from its initial $1 value pegged to the US dollar to where it is currently trading at $0.998944.

We can see that after big downfall in crypto currency but many of the coins have stable trading volume.
Many of the trader get the opportunity to buy coins at low cost.

Tera is a type of blockchain protocol that powers global payment entities with the help of fiat-pegged stable coins. Terra Began in 2018 It was founded by Daniel Shin and Do Kwon.
Luna was a cryptocurrency meant to help the UST stable coin maintain its dollar but it collapsed due to a massive fall. We can see that in the last few months Lunar which was trading as high as $119 and suddenly fell so much that the users suffered huge losses. I also saw my friend struggling with this crash.
Luna crisis this is completely isolated event happen and entire crypto space should not be judge that how Tera is behave for last few days.

Tera have important coins

• Luna

Luna is the native cryptocurrency of Tera ecosystem which helps to stabilize the price of USD
In this crisis it happened that the price of UST should be $1, sometimes it used to come down to 0.98 but suddenly it fell to 0.30.
It breaking the entire concept of stable currency it will happen on 11th of may.
Is the crisis real? Due to standard demand and supply, when the demand for something increases and the supply decreases, what happens in that condition the price of that thing increases.
But when there is too much supply of something and no one wants to take it, then the price starts falling.
In the case of UST, it happened that there was so much supply in your coin that people came into the panic situation and sold so much that there was too much UST and the price of Terra ecosystem has started falling.
Consequently the work of Luna is to stabilize the price with the price of UST but as soon as the price of UST starts falling and the price of Luna also starts falling. Thus the entire Terra ecosystem began to collapse.

• Will there be a bounce-back or not ?
  

I think it's very difficult to get bounce back in Luna now. If we talk about investment, then investing in it will be like gambling because there can be both loss and profit. For a few days, Luna has been getting bouncebacks again and again but it will not able to survive.
In the last few days, there has been a revival plan in Luna due to which new people have invested but the problem has been that the circulating supply of Luna is increasing.
So the burning which was there did not work as much and their plan has also failed. Because as the circulating supply increases, the price will fall. There will be less chance to increase the price.

Now the circulating supply of Luna is 6532.90B and if we talk about the whole crypto market the circulating supply is 1.3 trillion approx .
So here for Luna to reach $1 it is going to need 6 times more money than the whole crypto market which is impossible.

The manner in which the entire global market has deteriorated has not spared Steemit either. Steam's price also dropped drastically in the last few days.From this downtrend, we got the price of steam and the price of SBD below -30. Due to which the debt ratio has increased above 27%.
We saw a lot of change during this fall .
We see their is no printing of Sbd.
Case 1 - When SBD dept ratio is below 9% . Then in that case we can rewarded with both SP and SBD.
Case 2 - when SBD depth ratio is below 10% but above 9%. Then in this case we saw the print of reward of Steem with SBD and SP.
Case 3- If the depth ratio is above 10 % or equal to 10% then SBD printing is stopped on your posts. Only we see SP and STEEM.
We can see in recent few days ago the depth ratio of SBD is at 10%. So thats why we can see only steem prize or SP .
In few days ago on my recent posts i just get only Steem reward.

SBD is a depth currency which means for each SBD backed, the price of Steam is considered.
So when the printing of such depth currency becomes more or when the price of steam drops too much, to prevent that, SBD printing stops and only steam prize is given.

Seeing all this, I was also very upset because I did not get the reward as much as I wanted. Because SBD was not being printed.
But I still have full faith in Steemit and this project and I always promote about this platform to many of my friend.

Ups and downs are common in the crypto world. Because it is a huge market and due to high volume, it also has high volatility. Over the past few days, we have seen that some investors have suffered huge losses due to the crash of Luna. But this is not the end, we have to be alert in advance.
I would like to request all the investors not to lose heart and face it firmly next time.

Finally, I wish to invite my friends invite @ngoenyi @monzz122 @cryptogecko @enamule17 @wase1234 @poorvik @suboohi @mrsokal @graciella @becki96830 , @undaunted123 @krishna001 to also come and join this amazing contest