In addition to the conflict between Russia and Ukraine the collapse of LUNA is shaking the cryptocurrency market
While the cryptocurrency market has been affected by the accumulation of economic and financial sanctions that Western states have imposed on Russia as a result of the conflict with Ukraine, which added to the regulatory policies being adopted by countries such as Russia, USA and China are actions that have pushed back the price action of Bitcoin, to these scenarios is added the recent price collapse of the cryptocurrency LUNA.
All of the above has created a sense of panic among large, medium and small cryptocurrency investors, since all these scenarios are indirectly affecting the health of the cryptocurrency market, a fact that reveals an increasingly uncertain context in the short and medium term.
However, beyond any positive reading, there is no doubt that the cryptocurrency market is going through a period of high uncertainty, considering that the most important cryptocurrencies by market capitalization continue to depreciate.
While the war between Russia and Ukraine is this very adverse scenario for the cryptocurrency market, internally to the market we must add a new negative context, as recently, terraUSD which is a stablecoin that should suffer from low volatility, depreciated more than 70% in just two days by losing its parity with the US dollar, as it relied on an artificial system supported by the Luna cryptocurrency that plummeted 99% in just hours.
All these negative scenarios full of financial sanctions, added to adverse behaviors of the traditional markets, are actions that in some way or another are correlated with the price collapse of the cryptocurrency market.
In other words, everything that has been happening in the conventional markets in recent months has somehow been directly affecting cryptocurrency prices as well.
In summary, the above triggers are no exception to the price crash that the cryptocurrency market is likely to continue to experience. I would like to know your point of view to what has been developed here.
SOURCES CONSULTED
Cointelegraph Binance temporarily suspends LUNA, UST withdrawals citing network congestion. Link
OBSERVATION:
The cover image was designed by the author: @lupafilotaxia, incorporating image: Analyticslord
Hello @lupafilotaxia, I think that the events are triggering a "domino" effect, every day we are finding the continuous collapse of BTC and some other cryptocurrencies are following this same downward trend, what worries me the most is how far will BTC collapse? beyond being patient and waiting for his recovery, what else can we do?
The situation continues to be alarming
Hello @tocho2
Correct, the negative action of the unexpected event Luna experienced has brought a very negative effect to the whole cryptocurrency market. Regarding Bitcoin I think 28K will be a good support line.
Best regards, be well.
I strongly agree with you. LUNA/UST's infamous "de-pegging" has been the black swan event for crypto, which added much uncertainty to an already miserable situation in the markets... I hope we can see some positive re-bounces soon...
Thanks for sharing :) @lupafilotaxia
Hi @qsyal
Uncertainty has taken over the cryptocurrency market, no doubt, the negative action of the unexpected event that Luna experienced will affect us for a long period of time.
Best regards, be well.
Right now the market is totally down so that I can tell you only go toward accumulation and remember.
Higher the risk Higher the profit.
Hello @akb01
Good point, the higher the risk the higher the profit.
Best regards, be well.
Hi @lupafilotaxia
Another solid read buddy.
Talking about LUNA recent crash - it's indeed such a challenging (and devastating) time for so many investors out there. And for all those people, who decided to store their wealth in UST - people who didn't accept risk of losing their funds (as we do, when we invest in crypto project). All those people hold UST, assuming that they do not take any risk and are just preserving their capital in something which was supposed to be a stable coin.
Many things had happened since LUNA and their UST expolded. In just a couple of days we've already witnessed blame game starting: Blackrock and citadel (together with Gemini) has been accused of market manipulation and they were already blamed for well coordinated attack.
I'm not sure where that rumour came from. Also I dont think that Blackrock or Citadel would ever confirm if they indeed were behind this crash. It seem to be obvious that both would deny. So we may have to wait to know the truth (we may never learn it either way).
It's also hard not to have an impression, that LUNA became a target because they were the first large project which wanted to back up their stable coin reserves with another crypto (BTC). That could anger many powerful people and it would challenge USD as a reserve currency. So perhaps this was the reason why LUNA had to be "an example". So others would not follow ...
PART 2:
I truly wonder if LUNA may find a way to get out of current trouble. They apparently have solid community and many developers building on their blockchain. So perhaps someone new may take over LUNA, get rid of current CEO (Do Kwon), remove UST from their ecosystem (and replace with some traditional stable coin) and try to kick-start this project.
Any thoughts on that? Also: do you hold any LUNA yourself? I bought like 300k during recent dump (spending only small amount of $$$). I accepted that it may be worth ZERO, but having some "skin in the game" is making me research more about this project and follow upcoming news related to it.
Enjoy your weekend buddy,
Yours, Piotr
Hi @crypto.piotr
The whole scenario that Luna has brought about in the cryptocurrency market is very devastating, to the point that many are saying that the end of cryptocurrencies has come.
The markets, both traditional and cryptocurrency markets will always be manipulated, but what they did with Luna has no name, it is a grotesque action.
Maybe what happened with Luna is a premeditated action to fill the cryptocurrency market with negative news.
The actions of issuing millions of tokens that they have recently executed in the Luna ecosystem are chaotic to the point that these actions do not point to finding a way out of the current problem as they make things worse.
Best regards, be well.
I love reading your replies @lupafilotaxia
Thanks for always being so responsive buddy
It's me again with one more comment @lupafilotaxia
I've just noticed that LUNA printed 6trillion new tokens within recent few days. So even with enormous price drop - they still have market cap above 2$ trillion.
Which is more than BTC or ETH :/
Isn't shocking?
They must figure out how to burn some of current supply. or price of LUNA will tank even more. It is simply not possible for them to be the number 1 crypto (in terms of market cap)
What do you think?
Yours, Piotr
Hi @crypto.piotr
Correct, I heard about that issue of 6 million tokens they have recently executed in the Luna ecosystem, as I mentioned before, these actions are chaotic and in my view do not point to find a way out of the current problem, as they make things worse.
Best regards, be well.