Turkey; It is one of the countries with the most crypto users in the world and in Europe. Crypto investors in Turkey were shaken by the massive crash in the market.
With the Fed’s interest rate hike move and announcing that it will narrow the balance sheet, cryptocurrencies began to decline. The decline that started under the leadership of Bitcoin spread to other cryptocurrencies. However, the effect of Luna, not Bitcoin, was greater in the last drop. Investors lost almost all of their money, and Luna and Terra were also beyond salvage. The Shiba Inu added another zero with the decline.
Cryptocurrency investors are getting more and more worried by the minute. Investors acting with anxiety also cause sharp price and quantity movements in the markets. Cryptocurrency markets have officially entered a chaos and all the signs are pointing to the collapse.
IT STARTED WITH BITCOIN AND CONTINUED WITH TERRA AND LUNA
The earthquake in the crypto money markets started with the Fed ‘s announcement that it would narrow its balance sheet after the interest rate hike. Afterwards, with the fall of the stablecoin Terra UST , this situation multiplied and started to spread widely. Luna and Terra UST investors are on the verge of zeroing out, with no light on their salvation.
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HOW DID THE SYSTEM WORK?
Terra UST, which is traded at the same level as the dollar in the crypto money market, was secured by Luna. When 1 Terra UST is sold, 1 Luna token is also revealed. Buying 1 Terra UST also reduces 1 Luna token. The more purchases Terra UST saw, the more Luna tokens were getting lower and higher in price. Luna, which is among the top 10 cryptocurrencies, has seen great destruction. Luna was not insuring anything and Terra UST was in for a big sale. For every Terra UST sold, 1 more Luna was minted, sales accelerated, Lunas multiplied, purchases almost stopped, Luna multiplied and became almost completely worthless.
1 DOLLAR FIXED ALSO LOST
Terra UST’s equal to 1 dollar also disappeared with the sales. Do Kwon, founder of the Terra ecosystem,He Announced That Bitcoin will be used as collateral. In other words, he stated that if UST falls, they will protect the value of UST by selling Bitcoin. This process would have started and started automatically when the UST dropped to $0.98.
BITCOIN ALSO CRASHED Bitcoin, too, dropped from its historical peak of $69,000 to $
40 thousand and was struggling to stay at these levels. With Bitcoin, which fell after the Fed’s statements, the Terra ecosystem began to collapse. UST has dropped below 0.98, already falling Bitcoins are starting to be sold to raise Terra UST. Thus, the Bitcoins that were collateral in Terra UST’s hands were finished. WHAT IS THE REMEDY FOR Liberation?
Billions of Lunas need to be printed to get the system back on track, to fix the UST at $1. Luna’s price, which has increased in the market, will continue to be traded at the bottom levels. Thus, the losses of Luna investors may continue for a long time.
WHERE DID LUNA AND UST COME FROM?
Luna was trading around $90. It had achieved a stable price rhythm by showing small upward and downward movements. However, with the latest developments, Luna has almost completely lost its value. Currently, Luna is trading at $0.30, down 98 percent.
Terra UST, on the other hand, remained stable at 1 dollar. With the sharp bearish movement, it is currently trading at $0.65.
BITCOIN BELOW 30 THOUSAND DOLLARS
Bitcoin prices also continue to decline. Bitcoin, which declined from $ 69 thousand to $ 26 thousand 600, thus declined by 62 percent from its historical peak. Currently, Bitcoin is finding buyers at $ 27 thousand 160, with a decrease of 15 percent. Thus, Bitcoin is trading at a 16-month low.
ETHEREUM ALSO DESTROYED Ethereum
, which was traded at $2500 levels, fell to $ 1786 with a sharp decline. The heavily injured Ethereum is currently trading at $1857, down 23%.
DOGECOIN DESTROYED Dogecoin
, acting under the guidance of billionaire businessman Elon Musk, fell by 33 percent to $ 0.074.
SHIBA INU ADDED ANOTHER ZERO
Shiba Inu prices continue to decline. Trading with plenty of zeros, the Shiba Inu added another zero and is trading at $0.00000992, down 37 percent.
SOLANA OFFICIALLY ELLOWED
Solana, which was popular for a while, continues its steep decline. Solana, which saw its historical peak with $ 260, is currently trading at $ 44 with a decrease of 33 percent. Thus, it has moved away from its historical peak by 83 percent.
FEAR AND GREEDY INDEX IS RISING Cryptocurrency
protect and greed index is in the extreme fear zone at 12 points. This appears as a signal that sales may continue.