The cryptocurrency market fell in May, while June has a silver lining

The cryptocurrency market fell in May, while June has a silver lining – Mail Bonus

May 2022 was not for the faint of heart. Even the most difficult and experienced cryptocurrencies were tested in the first two weeks of the month with a drastic drop following the US Federal Reserve’s announcement that interest rates would rise by 0.5%.

Crypto was used to show less correlation with real events and was generally unchanged by capitalist successes and mistakes. On the other hand, a very stable estimated link between Bitcoin (BTC) and the S&P 500 index was seen throughout the first five months of 2022. Inflation and war have not been good in both markets either.

Stock market-like crypto could be due to a huge increase in market value in 2020 and 2021. At unprecedented rates, retail investors have flocked from stocks to cryptocurrencies, causing much more overlap in price movements.

Bitcoin plunged below $ 29,000 before returning to $ 31,800 on May 31, while Ether (ETH) fell to just over $ 1,700 before recovering above $ 1,900 before May 30. But many altcoins fared much worse, and the response from once-patient traders changed to about as much FUD as one could imagine.

Four stablecoins, two different directions

TerraUSD (UST) – now known as TerraUSD Classic (USTC) – was a stablecoin based on the Terra blockchain and ranked in the top six stablecoins in terms of market value. However, on May 9, the currency, designed to maintain $ 1 value all the time, gradually dropped to $ 0.29, leaving the world of cryptocurrencies in shock. Its prices have not recovered since.

As for how this affected the rest of the stablecoin landscape, there was a huge “shuffle on the deck” because the reputation of the trusted stablecoin collapsed overnight. Tether (USDT), the largest stablecoin by market value, fell by itself, albeit one much less drastically, to $ 0.95. Since then, it has recovered, but requirements for the currency’s solvency have been renewed.

Dai (DAI) and USD Coin (USDC) seemed to reap the rewards amid the dilemma as the graph above clearly indicates that the 10 largest whale houses from each stablecoin show increased confidence in these two assets and the currency moves in big waves in exchange from USDT and UST (now TerraUSD Classic). Nor can the Binance USD (BUSD) be ignored, as the third largest stablecoin grew to almost $ 19 billion in market value last month.

The tragic fall of LUNA from grace

The sister symbol of the UST LUNA Classic (LUNC) – an updated name of the original LUNA symbol – dropped from its historic high of $ 119 just seven weeks ago to $ 0.000125, which is equivalent to -99.9999% price reduction and market value. Disconnecting ICT from $ 1 seemed to be the last nail in the coffin as the algorithm was not fast enough to burn LUNC when ICT was in free fall due to extensive withdrawals on the Anchor Protocol.