Even with the Fed raising interest rates by unprecedented amounts, last week’s Consumer Price Index (CPI) numbers showed a further 6% gain. Record gas prices continue to drive inflation at an incredible rate, causing uncertainty in global markets. Since the Bitcoin and Ethereum prices continue to follow stock market actions, we’re seeing further losses as BTC price is down 4.76% while Ethereum is down 7.86% in the past 24 hours. Bitcoin is currently trading at $21.3k, struggling to hold support, while Ethereum is trading at $1.1k with a risk of dropping below $1k if the bear market continues.
Bitcoin Price Hits a Bottom of $20k
The $20k support level is a crucial range for Bitcoin’s price. The last time Bitcoin was below $20k was in December 2020. If BTC drops below $20k again, we could see amplified selloffs as traders and investors join the panic and offload their cryptocurrency.
The rising inflation isn’t helping as stock markets continue their dive. The S&P 500 is down over 8% in the past week, NASDAQ is down 4% this week, and the Dow Jones is down 6.64% this week.
Furthermore, tech stocks are also down significantly, with significant players in the industry like Tesla Inc (TSLA) down 11% this week, Apple Inc (AAPL) is down 8.84% this week, and Amazon.com Inc (AMZN) is down over 12% in the past five days.
It seems that while altcoins amplify Bitcoin’s price actions, BTC amplifies stock market price actions. The situation is undoubtedly grim, but the good news is that markets are cyclical and after every bear market follows a bull market. The key is to hold through these tough times to reap profits during the next bull cycle.
Ethereum Price is Down 37% This Week
While BTC lost 30% this week, Ethereum is showing even more significant bearish momentum as it’s down over 37% in the past seven days. ETH is currently trading at $1.1k with a market capitalization of $136 billion.
While current prices are exceptionally low, this makes for an excellent opportunity to start accumulating undervalued projects with tremendous long-term potential. After all, NFTs and the Metaverse aren’t going anywhere, and plenty of projects continue to build and expand their ecosystems even during this bear market.
The projects that will survive this bear market are mission-based, not money-based. If you have cash on hand, now could be an excellent opportunity for Dollar-Cost Averaging and picking up cryptos for cheap prices.
Terra Luna Down 12%, But Ecosystem Continues to Expand
One example of a project that showed significant price losses but continues to expand its ecosystem and build is Terra 2.0 (LUNA).
Despite significant losses over the past week, the Terra Luna community continues to onboard projects onto its new chain and supporting teams to build its ecosystem.
Prop 446, establishing the emergency allocation distribution method for Terra 2.0 (LUNA) for eligible teams building on the new protocol, has passed with a whopping 88.36% voting in favor.
The newly-passed proposal addresses the Emergency Fund distribution to projects looking to help build the new Terra 2.0 ecosystem, providing them with the necessary support to cover development costs.
Terra 2.0 (LUNA) is currently trading at $2.28 with a market capitalization of $284 million. Surprisingly, Terra Classic (LUNC) managed to hold its support level of $0.000058 relatively well this week, with a current valuation of $381 million.
This means that LUNC’s market capitalization officially surpassed that of the new token, possibly speaking to the incredible community support for Terra Classic.
In other Terra Luna news, Do Kwon’s Twitter account remains inactive since June 11th. Earlier this month, Do Kwon promised to be more proactive in communicating with the press and “getting the right information out there.”
However, the only Tweets published on his account since were disputing personal attacks against him that he managed to cash out billions in cryptocurrency before the Terra Luna attacks.
Overall, the Terra Luna community remains one of the most robust on the market, and the long-term potential for Terra is substantial. However, the UST depeg and attacks on the chain will be impossible for traders and investors to forget and will forever leave a sour taste in their mouths regarding LUNA.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, and Metaverse news!
Image Source: studiostoks/123RF