Bitcoin (BTC) and the broader crypto market suffered a devastating sell-off over the weekend, with Bitcoin and the broader crypto market losing about 10%. The broader crypto market has decimated $250 billion(R 4tn) in investor capital in just three days.
Bitcoin (BTC), the world’s largest cryptocurrency, has fallen below $33,500(R 541k) as of last week’s close. According to the Twitter handle Blockchain Backer, Bitcoin losing its critical support of the 100-day moving average (DMA) might lead to more losses. The crypto analyst explains:
“Bitcoin closes the week below the 100-week moving average. Both previous times led to capitulation to a 200-week moving average in 2014 and 2018. Today’s chart has many differences from those two times, and those two times were very similar to each other. Big dive in tomorrow!”
According to Santiment, an on-chain data provider, trader mood has once again fallen to negative levels. “With #Bitcoin now retracing all the way down to $33.9k(R 547k), trader sentiment has plunged to six-week lows,” it says. We love to see capitulation indicators like this since weak hands leaving the space is usually what is required for a truly noticeable bounce.”
With today’s downturn, the Bitcoin price is now down roughly 30% year to date.
LUNA Crash, Altcoin Market Sell-Off
Ethereum (ETH) continues to closely track Bitcoin, and the ETH price has already dropped below $2,500(R 40k), approaching the 2022 low of $2,200(R 35.5k).
Terra has had significant price corrections over the last week, with the price of LUNA plummeting by 20% in a single day due to a huge sell-off for its UST stablecoin. Concerns about a de-peg surfaced as the price of UST stablecoin fell below $1.0 (R16.14). “The circulating quantity of LUNA climbed by 957,201 in a single day, reaching 91.357 million, setting a new record for the circulating supply of LUNA in a single day since April 8,” crypto expert Colin Wu explains.
The Luna Foundation is apparently working on steps to safeguard Bitcoin’s UST peg.