crypto crash

Akash Girimath Bitcoin price continues to stride with $53,687 and $56,276 as its short-term targets. Ethereum price pauses before retesting the $4,659, followed by the $4,777 hurdles. Ripple price to face a declining resistance level before it retests $0.956. Bitcoin price has been on a steady recovery phase after the recent flash crash. Ethereum and Ripple follow big crypto and are on their trajectories of retracement. The upswing for BTC is likely to continue, but investors need to note that a downswing might emerge such that a range forms. Bitcoin price eyes higher highs Bitcoin price is recovery from its December 4 crash and is currently hovering around $50,000 psychological level. This ascent comes as BTC tries to flip the inefficiency left by the bears during the recent sell-off. While $53,687 is still the short-term resistance barrier BTC wants to tag, investors need to know that BTC might sweep the swing low at $46,698 and set a trading range. Although this might result in a brief correction, it can serve as an opportunity to accumulate for sidelined buyers. Clearing $53,687 will open the path for Bitcoin price to tag the next level at $56,276. In total, this run-up would constitute an 11% ascent from the current position. BTC/USD 4-hour chart On the other hand, if Bitcoin price retraces to the extent that it produces a lower low below the December 4 swing low at $40,867, it will invalidate the bullish thesis. Ethereum price promptly follows BTC Ethereum price has rallied roughly 30% from its December 4 swing low at $3,370 and shows signs that it wants to go higher. The $4,493 resistance barrier is the first level ETH will encounter. Clearing this level will place $4,659 and $4,777 hurdles in its path. Ethereum will easily tag these levels, but the holders should keep a close eye on the all-time high at $4,878, as ETH might revisit. In a highly bullish case, Ethereum price could extend beyond its record level and set up a new one at $5,000. ETH/USD 4-hour chart While things are looking up for Ethereum price, a failure to breach through the $4,493 hurdle could indicate a weakness among buyers. If ETH retraces lower and produces a lower low below $3,890, it will invalidate the bullish thesis. Ripple price faces two hurdles Ripple price has seen a considerable recovery, similar to Bitcoin and Ethereum. As it stands, the XRP price looks ready to tackle the bear trend line extending from November. Any uptick in buying pressure pushes the remittance token toward this barrier. A decisive 4-hour candlestick close above this trend line at roughly $0.87 will set a higher high and confirm an uptrend. This move could attract sidelined buyers and propel XRP price to retest the $0.956 barrier. In total, this climb would represent a 15% gain from the current position. XRP/USD 4-hour chart On the contrary, if Ripple price fails to slice through the declining trend line, it will suggest that the sellers are not done offloading. In this situation, the XRP price will knock on the $0.764 support level. A breakdown of this barrier that produces a lower low will invalidate the bullish thesis for XRP.  

Major cryptocurrencies and Alt coins have been under increasing pressure as of late as economic conditions worsen. While the sell-off continued yesterday, pushing Bitcoin 7% lower and Ethereum down 8%, investors continued to lower their exposure to risky assets ahead of this week's Fed meeting as it is set to be a major event. The Fed is expected to finally accelerate the pace of its QE tapering, which could reduce part of excess liquidity in the markets and is generally viewed as a negative for high-risk asset prices, like equities and cryptos. Meanwhile, it was reported yesterday that inflows into digital asset investment funds dropped below $100 million in the previous week, showing the second straight week of lower inflows indicating lower interest from investors during the ongoing correction. However, as we have seen several times in the past, corrections in the crypto market seem to have an impact on general sentiment but can also be reversed quite rapidly if investors were to receive an unexpected surprise. Purple bricks down 20% after lettings error Purple bricks stock price has dropped over 20% as the company recently announced it will set aside up to £9m to cover lettings errors . This delayed the release of the earnings report and could prove to be a hard to overcome hurdle as economic conditions continue to worsen and as the company contends with several more issues, including rising costs. While it remains to be seen if Purple bricks will manage to recover in the near future, the situation could continue to worsen until the ongoing matter is resolved.

The crypto market's capitalisation has fallen 2.8% in the last 24 hours to $2.166 trillion. Methodical pressure on the significant coins persists along with wary trading in traditional equity markets. The bitcoin price has been losing 2.5% in the last 24 hours and is 5.6% lower than it was exactly a week ago. Ether is down 3.4% and 4%, respectively. Some other top coins are also under severe pressure, but we cannot say that the dynamics are unambiguous. For example, XRP is up 5.5%, AVAX is up 22%, and Luna is up 30.7% in the last seven days. At the beginning of the year, institutional and investment bank interest provided cryptocurrencies with overperformance but now lowered demand for safety is becoming their Achilles' heel. The most methodical, albeit relatively measured, pressure has been seen in Bitcoin and Ether, which have been under bearish control for the past month and a half. According to equity and commodity market definitions, BTCUSD and ETHUSD have crossed the bear market threshold, having lost more than 20% of their peaks in early November. Bitcoin, meanwhile, is not gaining meaningful support on the decline towards the 200-day average. These are all signs that the bear market is entering its rights, as enthusiasts can no longer buy out any drawdowns. Generally speaking, a modest downside amplitude is not typical of cryptocurrencies, so short-term traders should be prepared for an explosion of volatility on a decline below meaningful levels. We assume that crucial support is concentrated near $40K for Bitcoin, a resistance level in January and a support level in October. Falling below this level could dramatically increase the coin's volatility and affect the entire market. For Ether, relatively measured volatility could continue up to the level of the 200-day moving average (just above 3300), which coincides with the area of extended consolidation in August and September and the start of the latest rally in October. Suppose Ether and Bitcoin fail to find strong buying below these levels as well. In that case, we risk seeing a true capitulation of the entire cryptocurrency market and a revision of the outlook to a more bearish one.

BTC was down 0.8% on Tuesday, ending the day near $39,500. On Wednesday morning, the price stabilized around the $40K level, showing a slight increase of 0.4% over the past 24 hours. Cryptos try to stabilize Ethereum added 1.8% during the same time. Other leading altcoins from the top ten are showing growth in the range from 0.9% (Avalanche) to 3.7% (Binance Coin). The Shiba Inu Token (SHIB) has also jumped by 15%, becoming the growth leader in the TOP-100. According to CoinMarketCap, the total capitalization of the crypto market increased by 1.5% per day to $1.87 trillion. The Bitcoin Dominance Index fell 0.4% to 40.7% on a sharper rebound in altcoins. Related article: What Are Altcoins? (ADA) Cardano Price, (LTC) Litecoin And Bitgert (BRISE) Analysis Сrypto market attempts to stabilize after the downturn caused the Fear and greed index to strengthen. It added 5 points up to 25 by Wednesday morning and remained in a state of "extreme fear". Bitcoin remains the lame duck of the crypto market due to the prevailing price decline in traditional financial sectors. BTC tried to correct upwards on Tuesday after a strong drawdown the day before. According to CoinShares, institutional investors withdrew $134 million from crypto funds last week, the most in 13 weeks. BTC can outperform bonds and stocks It is still difficult to find confirmation of the hypothesis that cryptocurrencies are a hedge against inflation. The latest US consumer inflation data showed an 8.5% rise in prices in the US. During the same time, the capitalization of the crypto market in dollars decreased by 13%, reducing the purchasing power of the initial capital by more than 20%. Speaking of Germany, for example, with its 7.6% price increase per year, an 8% depreciation of the euro against the dollar should also be added to the equation, which will further increase the losses. Investments in gold, on the other hand, give real (inflation-adjusted) growth of 8%, and in euros - more than twice as much. Related article: ECB To Shock Markets In The Following Week!? US Dollar Rate Under Pressure As Well! The FxPro Analyst Team emphasized that this relationship is critical for retail investors, most of whom make decisions based on rather impulsive estimates and proceed from the foreseeable horizon. At the same time, the institutional approach still points to the attractiveness of cryptocurrencies. Bank of America believes that Bitcoin and other cryptocurrencies could outperform bonds and stocks in the face of a potential global economic recession. Investment agency Morningstar believes that cryptocurrencies have no equal in terms of income among assets, although they have too high volatility. This is similar to the issue of new assets that the US stock market went through about a hundred years ago. By the beginning of the new century: it was the sector of high-tech companies, and now is the turn of cryptocurrencies.

Terra's LUNA price and UST suffered a colossal crash and lost over $39.2 billion in market cap, fueling outrage among holders. A Terra holder filed a police complaint against Do Kwon, revealing thousands of Singapore investors are victims of the death spiral. The Korean National Tax Service has imposed $78.4 million in corporate and income tax on Do Kwon and Terraform Labs. The collapse of Terra's LUNA price and algorithmic stablecoin TerraUSD (UST) has sparked outrage in the crypto community. Institutions and retail investors suffered significant losses when $40 billion in LUNA and UST’s market value was destroyed within a week. Do Kwon, CEO of Terraform Labs, is in the midst of all the anger, and legal issues are starting to surround him. Terra’s LUNA price death spiral The crypto community witnessed the first “crypto bank run” in history when both Terra's LUNA price and UST crashed, wiping out nearly $39.2 billion in market value within a week. UST, Terra’s algorithmic stablecoin, suffered a de-peg, losing its $1 parity, and is trading at $0.08 at the time of writing. Likewise, Terra’s native token LUNA plummeted from $77 to $0.000001 within a week. LUNA and UST three-day chart In a series of tweets, the Luna Foundation Guard revealed that it had transferred 52,189 BTC to “trade with a counterparty” as UST fell below its intended $1 peg. This was an attempt to reestablish the algorithmic stablecoin’s peg. Terra directly sold 33,206 BTC in a last-ditch attempt to defend UST’s peg, to no avail. Terra’s blockchain was halted several times on and thereafter, and LUNA and UST were delisted from multiple cryptocurrency exchanges, including Binance and Coinbase. LUNA and UST holders outrage Cryptocurrency investor forums on Reddit have noted the rising outrage against Do Kwon. A LUNA holder filed a formal complaint with the Singapore Police and referred to Terra's crash as a “cryptocurrency scam,” seeking justice for all affected investors. Meanwhile, another furious investor broke into Kwon’s appartment in South Korea looking for answers after the token spectacularly collapsed. Kwon’s wife has since reportedly been either placed in protective custody or is under police guard at her own request. Read next: Stablecoins In Times Of Crypto Crash. What is Terra (UST)? A Deep Look Into Terra Altcoin. Terra - Leading Decentralised And Open-Source Public Blockchain Protocol | FXMAG.COM Investors from different backgrounds have urged authorities to arrest Kwon, forcing South Korean lawmakers to summon the co-founder of Terraform Labs. Kwon would have to appear before the South Korean Congress and testify on the subject of the algorithmic stablecoin UST’s and LUNA’s collapse. Rep. Yoon Chang-Hyeon, of the South Korean People’s Power Party, addressed the collapse of Terra’s death spiral at a plenary meeting of the National Assembly's Political Affairs Committee on Tuesday. He said: We should bring related exchange officials, including CEO Kwon Do-hyung of Luna, which has become a recent problem, to the National Assembly to hold a hearing on the cause of the situation and measures to protect investors. Do Kwon under investigation According to the Korean National Tax Service, Kwon is currently under investigation for tax evasion after LUNA and UST collapsed due to a corporate and income tax burden of $78.4 million. Korean media's DigitalToday has obtained documents from the South Korean Supreme Court Registry Office that reveal Kwon decided to dissolve Terra's Seoul and Busan branches during its general shareholders' meeting on April 30. Following Do Kwon's decision, the Busan branch was liquidated on May 4 and Seoul branch on May 5. The documents carry Kwon Do-Hyeong's (official name of Do Kwon) name as the liquidator of Terraform Labs' offices. With the new findings, it has become clear that there is more to Terra's collapse than a coordinated attack or UST's de-peg. Kwon remains under suspicion in the investigation conducted by Korean authorities. Moreover, a specialized financial crimes unit in South Korea, the ‘Yeouido Grim Reaper’, has been tasked with the investigation of Terra’s collapse. The unit consists of 48 people made up of seven prosecutors and other executives from the Financial Services Commission and Financial Supervisory Service that have been called to investigate the methods by which Terraform Labs attracted investors to its tokens. The committee was disbanded two years ago but has been put back together to look into the events surrounding Terra’s demise and the extent of investor damage caused. Some win and others lose US asset management company Pantera Capital turned a $1.7 million investment in LUNA into $170 million by cashing out its investment well ahead of the crash. The institution, creator of the first blockchain hedge and venture funds in the US, did not suffer significant losses from Terra’s collapse as it pulled 80% of its investments out of LUNA over the last year. Apart from their LUNA investment, Pantera Capital had backed Terraform Labs, injecting $25 million in January 2021 and joining a $150 million fund round in July 2021. The firm recovered its investment before LUNA’s freefall to zero. Pantera Capital’s exit from LUNA is considered suspicious. Joey Krug, co-CIO at Pantera Capital, clarified that the institution purchased LUNA in the public market in July 2020, and not in a private financing round. Krug said, We managed that position down over time as it became increasingly profitable/large, in order to maintain a diversified portfolio. We initially invested in LUNA because of the progress we saw in developer adoption, the payments usage, and the broader ecosystem being built on Terra. Galaxy Digital, a US broker-dealer and another Terraform Labs investor, didn’t have the same luck. The firm started investing in LUNA in Q4 of 2020 and reported losses of $300 million for this quarter. In a letter, CEO Mike Novogratz told investors that: With our diversified business lines, Galaxy remains in a strong capital and liquidity position. We are well-positioned for long-term growth. Likewise, Binance had invested $3 million into the Terra ecosystem in 2018, receiving 15 million LUNA tokens. At LUNA’s all-time high, the investment was worth $1.6 billion. Yet due to last week's collapse of Luna, those 15 million LUNA tokens plummeted in value to just $3,400. Read next: Altcoins: What Is PancakeSwap (CAKE)? A Deeper Look Into The PancakeSwap Platform| FXMAG.COM A hard fork to create LUNA Classic and LUNA Core Do Kwon proposed the burning of UST, by increasing LUNA’s minting capacity from $293 million to over $1.2 billion. According to the Terraform Labs CEO, this is the only way to absorb UST’s supply and reestablish its peg. The plan was considered “high cost” for LUNA, UST holders and the Terraform Labs CEO faced criticism for the proposal. Kwon then focused on LUNA’s recovery without the algorithmic stablecoin UST. Since Terra’s ecosystem is not strong enough to build up and drive recovery in both Terraform Lab tokens, Kwon considered a practical and sustainable structure to preserve the developer ecosystem and the community. Kwon’s new and updated proposal suggests a fork in LUNA and the creation of a new Terra chain. The old Terra chain would be called Terra Classic (LUNC), while the new chain would be Terra (LUNA). The new chain would be fully community-owned, and the Terra Foundation wallet would be removed from the whitelist for the airdrop. Validators would reprogram the network ownership to $1 billion, distributing them to affected parties. 40% of the network’s ownership, $400 million would be allocated to LUNA holders (who held the token before UST de-peg). The hard fork offers to allay UST holders’ concerns by offering 25% at the Launch snapshot on May 27, 2022. 10% would be unlocked at genesis and the remainder would be unlocked over a period of two years. 25% would be reserved for the community pool. The co-founder of Terraform Labs believes Terra can recover from the coordinated attack by becoming a fully community-owned chain. Proposal 1623, the revival plan for LUNA without UST, has received 77.96% positive votes from the community. 1.39% of the community members abstained from voting. The whole crypto market bleeds After Terra’s LUNA and UST implosion, most crypto assets suffered heavy losses. Check out in this video what's next for Bitcoin! Follow FXMAG.COM on Google News

US stocks declined as the midterm election results are still not clear, but still seems to favor a divided government outcome. ​ Wall Street is having an election hangover that most likely saw an end to Biden’s blue wave. ​ Traders can now go back focusing on everything with inflation. ​ Votes are still being counted and the Georgia Senate race will go to a runoff next month. ​ Republicans look like they will get the job done with taking control of the House, but their majority lead will be a small one. What is complicating today’s mood on Wall Street is that the liquidity crisis for FTX is spilling over into other cryptos. ​ FTX was viewed as one of the so-called safe crypto players and their demise is raising concerns that other key crypto companies could be vulnerable here. The Solana token has been in freefall as SBF’s trading firm, Alameda Research, was an early supporter of the Solana project. China Producer prices in China have fallen into negative territory for the first time in almost two years as both China’s domestic demand is weak and their key trading partners are entering recession territory. China is also continuing to struggle with COVID as Guangzhou has to return to mass testing. ​ Five of the 11 districts will have mass testing and that is leading to concerns that a relaxation in covid protocols might be distant. Oil Crude prices tumbled on concerns that China is losing this battle with COVID and after the EIA report showed stockpiles rose to the highest levels since July 2021. ​ The weekly oil inventory data showed gasoline demand bounced back and that should still support a moderating demand outlook. ​ Production jumped higher and above the 12 million bpd level, but no one is thinking this will continue. ​ Supplies are still mostly tight and that should help limit the selling pressure that is hitting crude prices. Oil’s weakness could have been much more significant if Republicans had a stronger performance last night. ​ A strong red wave by Republicans would have meant greater pressure to ramp up production and help make the US energy independent. Gold Gold prices are softening ahead of Thursday’s US inflation report. Bullion traders have seen this movie before; a rally before a key inflation report just to see strong selling pressure return after inflation shows it’s not ready to moderate that much. ​ Gold could consolidate around the $1700 level but if the strong dollar trade gains traction leading up to CPI day, selling pressure could target the $1685 region. Cryptos Sam Bankman-Fried was supposed to be bulletproof. SBF was crypto’s ‘White Knight’ and the implosion of FTX means no one is safe. The stabilization period for crypto is over and now we wait to see if other contagion risks emerge. Binance was expected to save the day and buy FTX.com, but the deal appears to have hit a roadblock. CoinDesk reported that Binance was unhappy in the due diligence stage after reviewing FTX’s internal data and loan commitments. Cryptos are under intense pressure as contagion risks remain elevated from the FTX liquidity crisis. No one wants to touch anything that has ties with FTX and that is troubling news. No one is talking about buying this crypto dip until we see FTX secure funding and exhaustion happens with the selling of other tokens with ties to it. ​ Bitcoin plunged below the $16,000 level as the crypto rout worsens. This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds. US Close: Election Hangover, China inflation and lockdown hopes, Oil drops, Gold rally stalls, Crypto Turmoil - MarketPulseMarketPulse