Cryptocurrency started to move. Although not having high hopes, the major cryptocurrency Bitcoin broke its stable position for a while and started to break above $30,000. With the rise of Bitcoin, altcoins have also taken action.
The downtrend, which began with the US Federal Reserve rate hike, deepened as Terra UST lost value. The dollar started falling in the markets, as the United States announced that it would raise interest rates to contain inflation and the Fed announced that it would start reducing its balance sheet. Along with the increase in the trend towards the dollar, there has been an outflow of cryptocurrencies.
Then, the cryptocurrency markets took a severe hit when Terra UST’s tie with the dollar deteriorated and it experienced a rapid decline and reset in value. Terra UST also sold all the Bitcoins it held on exchange to maintain dollar parity. This initiative, which caused large price fluctuations in the market, ended in the collapse of the Terra ecosystem. Investors were driven away from the cryptocurrency markets as billions of dollars evaporated on UST and Luna.
TERRA UST FAILURE ENDED
After Terra UST was removed from the cryptocurrency world, the heat of this development began to fade and new global developments began to cause small movements in cryptocurrencies.
As life began to return to normal in China, where the coronavirus peaked again and quarantine orders were implemented, the Chinese government began to make decisions to ease covid measures. Industry and trade have come to a standstill in China due to the quarantine, which has disrupted the global supply chain. For now, it is believed that the cryptocurrency movement started with the onset of this situation.
BITCOIN CONTINUES LEADERSHIP
Bitcoin took the lead in the rising wave. Bitcoin, which has a premium of almost 5%, is trading at the level of 31 thousand 670 dollars. Bitcoin, which has long been below $30,000, continues to trade 55% behind its all-time high of $69,000.
ETHEREUM IS SHORT OF 2000 DOLLARS
Ethereum, one of the popular cryptocurrencies, is also gaining strength. Ethereum, which is trading at 60% of its all-time high, is finding buyers at the 1985 dollar level at a premium of almost 6%.
DOGECOIN CANNOT DELETE ZERO
Dogecoin added another zero in the quake for Luna, who was badly injured when the wave fell and couldn’t move except for the manipulative statements of billionaire businessman Elon Musk . Unable to erase that zero, Dogecoin is trading at a prime rate of 3.5% at $0.087. It is 88% behind its historic peak.
Those caught in the Solana wind are burned
Solana, who has raised high hopes but has been on a downward trend for months, still can’t come up with a boost. Solana, which is trading with an increase of 3.5%, is finding buyers at the $47.5 level. It is trading at 81% of its all-time high.
DOES NOT EXCITE VOLATILITY
Investors should be careful due to the volatility of cryptocurrencies. In cryptocurrency markets, which are free from authority and regulation, money can be bent and gone in an instant. It will also be in investors’ interest to address vague commentary and technical analysis that does not work at any point in the development by people who present themselves as experts but have no legal authority or qualification.