Cryptocurrency losses have been catastrophic in the last week, causing many to wonder if this signifies the beginning of a bear market. The surge in bitcoin prices can be attributed to the founder of Terraform, Duquan, buying bitcoin to establish a peg for the stablecoin of Terra Luna. However, now that Terra USD has been de-pegged, Duquan is having to sell bitcoin to drive the price back up, causing the value of bitcoin to decrease in the process. Traders have been shorting Terra for the last couple of days, making a lot of money, while there is speculation that an “attack” on Terra is being coordinated.
Welcome to a special late night edition of the superman show. Here with me, the superman, and I’m here with you tonight to really decipher what is going on in the cryptocurrency market.
Predictions and Previous Streams
In the past, I have predicted this bear market and talked about a bottoming event that was likely to occur. I also spoke about the fact that 30k looked like it was likely to be the reversal point. I wasn’t particularly happy with buying into cryptocurrencies until we hit 30k. Now that we have hit 30k, is this not actually a signal to a reversal, or is this the beginning of a long period of a bear market?
Overview of the Market
The long expected bottoming event has happened, the essentially the stock market has crumbled in particular the Nasdaq. The losses in cryptocurrency have been Nothing short of cataclysmic. Bitcoin as you would have seen which is essentially the barometer of the Cryptocurrency market this has tanked big time. The primary cause of this is not just inflation, it’s not just the correspondence with the financial market, but it is also a huge factor of this is Terra Luna.
Essentially what caused the price to go up parabolically, is now causing the price of Bitcoin to sink parabolically. The reason why is because Duquan essentially bought Bitcoin to create a peg for the stable coin of Terra Luna, and that stable coin is the Terra USD. Now what’s happened is essentially is that Terra USD has been de-pegged, and quite astronomically as well. Now what has to happen is Duquan who bought all of this Bitcoin essentially to bank the Terra Luna stable coin is now having to sell the exact same, he’s now having to sell Bitcoin in order to drive the price back up.
Attack on Terra Luna
There are potential reasons behind this, but what is known is that particularly a lot of whale friends are shorting the hell out of Terra and they have been doing that for the last couple of days. There is an attack reportedly coming from Justin Sun and Wall Street to bring down Terra.
In conclusion, the cryptocurrency market is going through a rough spot. As investors, it is important to be aware of the market and make informed decisions.