In Another Bloody Day, Bitcoin Tests $25,000 Low

Luna Network Collapse Drags Entire Crypto Market Down The storm is not over yet. Macroeconomic factors and the crisis in the credibility of stablecoins - cryptos paired with real assets, such as the dollar - add up and should continue to bring strong turmoil to the cryptocurrency market. In the last 24 hours, bitcoin was traded at $25,402 and, at the maximum, reached $30,059. At 7pm, the largest cryptocurrency by market cap was worth $28,415. At this level, bitcoin is down about 60% from its all-time high of $69,000 in November last year.Felipe Medeiros, analyst and partner at Quantzed Cryptos, points out that bitcoin lost $28,000 for a few hours, but recovered in an important support region, with high trading volume. “Over the next few days, it will be important to maintain these price levels, but any negative news for the macro scenario could bring even more volatility and bring Bitcoin down to the $22,000 level.” Medeiros highlights that this month will be marked by the end of the Luna network, with the cryptocurrency reaching the top 4 in the market, reaching a value of US$ 110 and now plummeting to lows of US$ 0.02. “It was the biggest coordinated attack in the history of the crypto market,” he says. “Some market players started selling hundreds of millions of dollars of stablecoin UST, which whenever it is sold, forces the sale of the luna token as well, because of the stablecoin arbitrage mechanism”, he explains. “This caused a death spiral with cascading sales and panic.” “The chaos of stablecoins and the loss of confidence in cryptocurrencies has now been followed by a slight recovery,” notes Edward Moya, financial market analyst at Oanda. “Tether, a true stablecoin that is backed by real assets, has also seen its $1 parity disappear tainted by the collapse of UST, the algorithmic stablecoin.”