June 28, 2022
The crypto markets are down… bad.
Turns out: the collapse of one of crypto’s largest blockchains doesn’t fare too well for the whole of the crypto ecosystem. In case you’re out of the loop, the collapse of the Terra blockchain and its beleaguered stablecoin TerraUSD, sent crypto to lows not seen since July 2021.
The reason why is fairly complicated, but – in short – Terra’s unofficial relationship with Bitcoin was what toppled crypto’s strength. Terra’s Luna Foundation Guard, an organization set up to ensure the stability of its ecosystem, owned over $1 billion worth of Bitcoin. They sold most of it attempting to shore up their struggling stable.
And not only did they fail to do so – but they killed Bitcoin’s price in the process. The rest of the market largely follows Bitcoin… so you can put two and two together for yourself.
Could Crypto ever lose its status as the king of crypto? Keep reading.
So, is crypto collapsed? Apparently not.
Is it down on its luck? Absolutely, but everything is.
Crypto was moving in sympathy with tech stocks, namely the large-cap members of the Nasdaq-100, even before the Terra fallout. Check out how the Nasdaq-100 ($QQQ) and the price of Bitcoin have trended since Dec. 2021: