Ethereum Slips, What Are The Next Vital Trading Levels For The Coin?

Ethereum has slid on its charts again at the time of writing. Over the last week, the coin lost about 10% of its value. The bears have strengthened in the market because the buyers have left the market.

Technical outlook of the coin remained bearish and selling pressure mounted. The coin would continue to remain so over the next trading sessions.

The coin also witnessed a sustained sell-off over the last 48 hours. Ethereum fell below its long standing support line of $1900.Over the last 24 hours the coin tried to recover itself but the bearish price action is still strong at the time of writing. The bears might be exerting pressure to push the coins below the price mark of $1700.

A fall below the $1700 price mark will cause ETH to tumble further by another 19%. For the bulls to take a breather, ETH needs to trade above the $1900 price mark again.

Ethereum Price Analysis: One Day Chart

Ethereum was priced at $1700 on the one day chart | Source: ETHUSD on TradingView

The altcoin was priced at $1793 at the time of writing. The altcoin has not traded near this price level in almost in one year now. The altcoin’s overhead resistance stood at $1900, for bearish pressure to be invalidated the coin has to attempt trading above the $2200.

Local support for the coin was at $1700 which the coin can trade below if the bears continue to drive the price action. The volume of the coin traded decreased and was seen in green. This indicated positiveness on the chart.

Technical Analysis

Ethereum
Ethereum registered an uptick in buying strength on the one day chart | Source: ETHUSD on TradingView

Ethereum was trading very close to the immediate support level. The coin was trading below the 20-SMA line which meant that selling momentum was active and strong. This reading meant sellers were in charge of the price momentum.

In correspondence with the same, the Relative Strength Index was below the half-line. This meant that the buying strength was less in the market. However, it can be noted that, there is an uptick on the RSI which could be a sign that buying strength is picking up momentum.

Chance of a reversal cannot be ruled out because there is a bullish divergence on the chart (yellow). A bullish divergence is related to a trend reversal.

Related Reading | Bearish Indicator: Is Bitcoin Headed For Its Ninth Red Weekly Close?

Ethereum
Ethereum continued to flash sell signals on the one day chart | Source: ETHUSD on TradingView

The Awesome Oscillator was still negative on the one day chart. The indicator is supposed to depict the price momentum, the red histograms show negative price action. The red histograms also depict a sell signal on the chart.

The Directional Movement Index also decides the overall price movement, and it showed that -DI was above the +DI level. The Average Directional Index (Red) was above the 40 mark, which meant that the current market trend was strong and the bearishness might continue over the next trading sessions.

Related Reading | Ethereum Profitability Dumps To 2-Year Low As Price Corrects Below $2,000

What Do We Know About India’s CBDC And Its Graded Approach?

India remains firm on its idea to introduce the Central Bank Digital Currency (CBDC) in 2022-23. In the recent most development in regards to the same, the Reserve Bank of India (RBI) has proposed a graded approach for the introduction of the CBDC.

The annual report released by the Reserve Bank Of India stated the graded approach will be beneficial in terms of maintaining the objectives of the monetary policies, financial stability along with an efficient operation of the currency and payments system.

This approach shall reportedly happen in a three-step manner which will cause “little to no disruption” to the traditional financial system.

Central Bank stated in the annual report that,

The Reserve Bank of India proposes to adopt a graded approach to introduction of CBDC, going step by step through stages of Proof of Concept 12, pilots and the launch.

This news comes after RBI mentioned that it was about to start testing and running the pilot projects related to the CBDC.

The CBDC Is Expected To Provide A “Big Boost” To Digital Economy

In the annual budget of 2022, Nirmala Sitharaman had stated that the Central Bank Digital Currency would be influential in boosting the digital economy of India.

The annual report stated that RBI was looking into the pros and cons of the digital currency and how that would impact the traditional finance sector.

According to the requirements of being in alignment with the current monetary policy and structure of currency system, the CBDC needs to be designed.

The Reserve Bank Of India is at the moment looking and examining many design elements of a CBDC so that the digital currency can exist with the current fiat system.

The idea is to ensure that the digital currency should not cause any disruption to the traditional financial framework of the country.

 Related Reading | Coinbase CEO Says, ‘Informal Pressure’ From RBI Disrupted Our Payments

RBI Is At The ‘Proof Of Concept’ Stage With The CBDC

The Proof Of Concept as mentioned above, is an exercise which is primarily concerned with understanding and determining whether the CBDC can be executed properly or if the idea can be envisioned over the upcoming times.

Currently, RBI is in this phase to determining the functionality and feasibility of the idea. The Indian Finance Bill of 2022, had introduced the 30% tax on crypto’s unrealised gains and also mentioned the introduction of a legal framework for the launch of the Central Bank Digital Currency.

The Reserve Bank Of India mentioned,

The introduction of CBDC has been announced in the Union Budget 2022-23 and an appropriate amendment to the RBI Act, 1934 has been included in the Finance Bill, 2022. The Finance Bill, 2022 has been enacted, providing a legal framework for the launch of CBDC

Earlier this month the RBI spoke of how cryptocurrencies could possibly lead to dollarization of the economy.

Related Reading | RBI Governor Calls Crypto A Threat To India’s Macroeconomic Financial Stability

Bitcoin was priced at $28,900 on the four hour chart | Source: BTCUSD on TradingView

Elon Musk: We’re Approaching a Recession but It’s ‘Actually a Good Thing’

Tesla CEO Elon Musk believes the U.S. economy is approaching a recession but he explained why it is “actually a good thing.” Musk has estimated that the upcoming recession will last 12 to 18 months.

Elon Musk Discusses U.S. Recession

Tesla and Spacex CEO Elon Musk shared his thoughts on the U.S. economy and the upcoming recession in a series of tweets Thursday.

Responding to a question about whether “we’re approaching a recession,” he answered: “Yes.” However, Musk noted, “this is actually a good thing.”

The Tesla boss explained that “It has been raining money on fools for too long,” stressing that “some bankruptcies need to happen.” He elaborated: “All the Covid stay-at-home stuff has tricked people into thinking that you don’t actually need to work hard. Rude awakening inbound!”

musk tweet

His recession tweet followed a statement he made last week, stating that the U.S. economy is “probably” in a recession. He warned that things “will get worse,” and estimated that the recession could last 12 to 18 months.

“The honest reason for inflation is that the government printed a zillion more money than it had,” Musk further commented.

A growing number of investment banks have warned about a recession. Goldman Sachs Senior Chairman and former CEO Lloyd Blankfein recently said we are heading towards a recession, advising companies and individuals to prepare for it.

In addition, Blackrock, the world’s largest asset manager, cautioned in a research note this week that the Federal Reserve’s efforts to increase interest rates to offset record inflation may trigger a recession. “If they hike interest rates too much, they risk triggering a recession. If they tighten not enough, the risk becomes runaway inflation. It’s tough to see a perfect outcome,” Blackrock detailed.

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Blackrock, BlackRock recession, Elon Musk, elon musk inflation, Elon Musk predictions, elon musk recession, elon Musk recession prediction, Goldman Sachs, Goldman Sachs recession, SpaceX recession, Tesla recession

Do you agree with Elon Musk that a recession is a good thing? Let us know in the comments section below.

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Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.




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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Report: FTX CEO Says Crypto Exchange Is Ready to Spend Billions on Acquisition Deals

Billionaire and FTX co-founder Sam Bankman-Fried said the leading crypto asset exchange aims to make a number of acquisitions and could spend up to $2 billion on such efforts. The FTX chief executive officer highlighted in a recent interview that a fraction of the funds raised by the company were “explicitly viewed from a potential acquisition angle.”

FTX Executive Sam Bankman-Fried Says Funds Raised Could Be Leveraged for Acquisitions

Sam Bankman-Fried spoke in an interview with Bloomberg’s Allyson Versprille and Yueqi Yang on Friday and explained that FTX is thinking about expansion moves and acquisitions. The crypto exchange FTX and its parent company West Realm Shire Services Inc. have raised over $2 billion from investors.

FTX trade volume data shows it is the second-largest cryptocurrency trading platform below Binance in terms of global trade volume. During the past 24 hours, FTX has recorded $1.56 billion in crypto trades with its 338 coins and 524 trading pairs.

Report: FTX CEO Says Crypto Exchange Is Ready to Spend Billions on Acquisition Deals

Bankman-Fried explained during the interview with Bloomberg’s Versprille and Yang that the company’s war chest of funds could be leveraged for a number of acquisitions.

“FTX is a profitable company,” the FTX executive explained. “You can look at the amount that we’ve raised over the last year or two – it’s a few billion dollars. That gives maybe a sense of where we are in terms of cash that was explicitly viewed from a potential acquisition angle.”

The FTX co-founder further detailed that the company wants to be able to offer customers more products so they can stay on the platform for all their needs, Bankman-Fried remarked. As far as acquisitions are concerned, Bankman-Fried said the firm is keeping a focused lookout. The FTX executive added:

It’s always something that we’re going to be open to and keeping our ears to the ground on.

Bankman-Fried’s comments follow FTX US launching a zero commission equities trading platform. The discussion on Friday also follows Bankman-Fried’s statements concerning bitcoin (BTC) and the network’s ability to be a payment network.

Bankman-Fried was also named one of the “100 Most Influential People of 2022” by TIME and time.com author Andrew R. Chow featured the FTX CEO in a profile editorial.

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What do you think about the FTX CEO explaining its plans to use funds to acquire companies and expand? Let us know what you think about this subject in the comments section below.

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Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.




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Terra LUNA 2.0 Price Plunge 60% Following The Much Awaited Airdrop

Terra’s Airdrop brings the month of May to a close, which began with the collapse of Terra’s LUNA 2.0 and TerraUSD (UST). However, after only a few hours of circulation, the new renamed Terra prices plummeted.

LUNA Airdrop Is Live

In order to restore Terra, DO Kwon, the founder, and the community came up with a few ideas. The majority of the vote went in favor of rebranding the former chain Tera Classic and creating a new chain called Terra (LUNA) (LUNC). Fresh tokens will be distributed to specific sorts of holders as part of the approach.

Today was the day when Block 1 of the new Terra blockchain was created, as per Terra. Meanwhile, just hours after the new token’s introduction, its value plummeted by 60%. As per the sources, Terra (LUNA) 2.0 started the trade between $17 and $18. Then the price rallied towards the $20 level.

At the moment, Terra’s pricing has bottomed at $6.30. The company’s trading volume has increased by 2408% to $97.5 million. On the other hand, the Terra Classic price hit $0.

1 Billion People To Receive The Airdrop

Terra already informed that customers who are eligible for the LUNA airdrop can look into their wallets for the new Chain and they must pick the Phoenix-1 network. However, it’s only the 1 billion people who will be receiving the Airdrop.

Pre-attack LUNA holders will receive 35% of the total, with 30% going to the community pool. Next, the UST holders will gain 15% of the airdrop after the post-attachment period.

Further, Terra states that users can put their liquid LUNA in a variety of products. It can be staked on the Terra station in exchange for incentives and a say in governance choices.

JPMorgan sees higher BTC price potential, a16z unveils $4.5 billion crypto fund and PayPal hints at more crypto involvement: Hodler’s Digest, May 22-28

Coming every Saturday, Hodler’s Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more — a week on Cointelegraph in one link.

Top Stories This Week

Andreessen Horowitz closes $4.5 billion crypto fund amid market turmoil

Venture capital player Andreessen Horowitz, or a16z, has unveiled a new $4.5 billion cryptocurrency fund. The a16z fund is the fourth of its kind and more than double the amount of its third crypto investment fund. With $3 billion earmarked for venture investments and $1.5 billion for early-seed projects, the fund will look to invest in companies at various stages in their life cycle. Andreessen’s new fund provides a strong indicator that venture capital interest in the crypto market remains high despite evidence of a brutal bear market.

JPMorgan places BTC fair price at $38K, declares crypto a preferred alternative asset

A client-focused note from JPMorgan this week detailed the banking giant’s thoughts on Bitcoin, claiming $38,000 as the asset’s fair value. The seemingly bullish outlook came on the heels of depressed price action for Bitcoin, which has been rangebound below $30,000. But even in February, when BTC was valued at $43,000, JPMorgan strategists said that $38,000 was fair market value. This week’s client note from JPMorgan also pointed to the possibility of positive price action for the entire crypto space — provided venture capital investment doesn’t waver.

WEF 2022: PayPal looks to embrace all possible crypto and blockchain services

Per comments from vice president Richard Nash, PayPal has its sights set on giving its platform more blockchain and crypto influence. “Just walking slowly in the crypto shield with buy/sell/hold in certain jurisdictions,” Nash told Cointelegraph at the World Economic Forum (WEF) in Davos, Switzerland. “And then looking to work with others to embrace everything we can, whether it’d be the coins that we have today in PayPal digital wallets, private digital currencies or CBDCs in the future.”

GameStop unveils beta cryptocurrency wallet and upcoming NFT platform

With time ticking down until GameStop’s NFT marketplace launch, the company has unveiled the beta version of an Ethereum-based wallet. The self-custody crypto and NFT storage solution is called the GameStop Wallet. The browser-based wallet will go hand-in-hand with the company’s future NFT marketplace. GameStop is also developing a mobile app version of the wallet.

Korean watchdog begins risk assessment of crypto as Terra 2.0 passes vote

Korea’s Financial Supervisory Service (FSS) is working to standardize its evaluation of digital asset risks in the wake of the Terra ecosystem collapse. While the FSS’s standardization efforts have only just begun, they are expected to lead to a legal framework for evaluating digital assets. Meanwhile, Terraform Labs CEO Do Kwon is moving ahead with an ecosystem recovery plan, having gained majority support from his community. The Terra 2.0 ecosystem went live on Friday with a new blockchain and crypto asset.

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Winners and Losers

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At the end of the week, Bitcoin (BTC) is at $28,449, Ether (ETH) at $1,729 and XRP at $0.37. The total market cap is at $1.17 trillion, according to CoinMarketCap.

Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are BORA (BORA) at 18.15%, Bitcoin Gold (BTG) at 17.79% and Ethereum Classic (ETC) at 11.09%. 

The top three altcoin losers of the week are TerraClassicUSD (USTC) at -46.13%, STEPN (GMT) at -27.38% and Elrond (EGLD) at -25.70%.

For more info on crypto prices, make sure to read Cointelegraph’s market analysis.

Most Memorable Quotations

“Decentralization truly puts more control and power back into the people’s hands where it belongs.”

Sonali Giovino, head of communications for Defiyield

“Projects must watch the interests of their community and users because, in the end, that’s the most valuable thing you have.”

Nicky Chalabi, ecosystem success and enablement professional at Near Foundation

“A lot of the policy and regulatory issues that limit the power of moving money have to do with stripping people of their economic freedoms.”

Jeremy Allaire, CEO of Circle

“In TradiFi people are thinking, ‘I don’t want to lose money — how can you help me keep my wealth regardless of markets?’ So, it’s very risk-management orientated. While in DeFi, the degens are like, ‘Gimme those triple-digit yields, woo!’”

Alexander Fazel, chief partnership officer for SwissBorg

“The rise of the term ‘Web3’ is encouraging because it means that people are seeing this underlying technology feed into different applications — the ones they didn’t necessarily expect.”

Gavin Wood, co-founder of Polkadot and Ethereum

“There’s absolutely no reason that a deed to a house couldn’t be a unique digital asset as long as that asset is created and stored in the correct way.”

Alex Altman, chief operating officer of Seal Storage Technology

Prediction of the Week 

Bitcoin price may bottom at $15.5K if it retests this lifetime historical support level

Bitcoin’s price has continued to struggle in recent days, often trading below $30,000, according to Cointelegraph’s BTC price index. However, the asset could still fall considerably further, according to Rekt Capital

Over the course of Bitcoin’s history, the asset’s price has respected the 200-week moving average (200WMA). “#BTC tends to wick -14% to -28% below the 200-MA,” Rekt Capital detailed as part of a thread on Twitter. “And since the $BTC 200-MA now represents the price point of ~$22000… A -14% downside wick below the 200-MA would result in a ~$19000 Bitcoin,” they added. “And if #BTC were to repeat the March 2020 downside wicking depth below the 200-MA $BTC would revisit the ~$15500 price point.”

FUD of the Week 

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‘Yikes!’ Elon Musk warns users against latest deepfake crypto scam

Did you watch a video of Tesla CEO Elon Musk advertising 30% gains via deposits on a crypto platform? Be warned that the video is a scam. Classified as a deepfake, the video was doctored to look real but is not, as verified by a Twitter comment from Musk himself. The video harnesses real footage of Musk doing a TED Talk earlier in 2022, altered to deceive viewers into a scam. Deepfakes are nothing new, however. This recent effort utilizes Musk’s fame in tandem with his known crypto involvement.

Crypto spam increases 4,000% in two years — LunarCrush

The last two years have resulted in a 3,894% uptick in crypto-related spam, according to recent data from LunarCrush, a crypto intelligence outfit. One aspect making detection difficult: The undesirable action is not all bot related, with a surprising amount coming from humans. Twitter is a hotbed for spam, based on the LunarCrush data.

Targeted phishing scam nets $438K in crypto and NFTs from hacked Beeple account

A hacker or group of hackers recently took over the Twitter account of Mike Winkelmann, a.k.a. Beeple. The hacker(s) that commandeered the well-known NFT artist’s account posted phishing scam tweets, angling the scam around Beeple’s recent collaboration with Louis Vuitton. Although Beeple managed to take back control of his Twitter account, the phishing effort pilfered roughly $438,000 worth of Ether and NFTs from victims.

Best Cointelegraph Features

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The Moon ‘created’ his lavish reality… and says you can, too

“Three years and BOOM, you can be anything you want — a famous musician, a billionaire. It doesn’t matter what you want to do, anything can be done with the right mindset.”

Crypto is changing how humanitarian agencies deliver aid and services

“It’s almost like the whole idea of a decentralized, distributed model is exactly what worked in terms of how we operated and deployed the system.”

How Terra’s collapse will impact future stablecoin regulations

The collapse of algorithmic stablecoin UST created a ripple effect for the broader crypto market and put regulators on extremely high alert. 

Crypto Miners Account for Over 2% of Electricity Consumption in Russia, Estimate Suggests

The share of crypto miners in Russia’s power consumption structure already exceeds 2%, according to a new government estimate. On this backdrop, the country’s industry ministry believes it’s time to bring the sector out of the shadows and regulate it.

Crypto Miners Burn More Electricity Than Russian Farmers

Miners extracting digital currencies account for more than 2% of the total volume of electricity consumed in the Russian Federation and their activities need to be “whitewashed” and regulated, Russia’s Deputy Minister of Industry and Trade Vasily Shpak stated. Speaking at a forum organized by the ruling United Russia party, Shpak elaborated:

This is more than the cost of electricity for agriculture. In this sense, we cannot but recognize mining as an industry.

Cryptocurrency mining is now in the “gray zone,” it’s not taxed in any way and creates risks for those involved in it, the government official noted during the event devoted to the development of blockchain technologies and the regulation of digital financial assets. Shpak is convinced that the industry can be brought out of the shadows and made transparent for the state.

The deputy minister expects that in the future the amount of electricity spent on mining will decrease as the industry moves towards less energy-intensive mining protocols. Nevertheless, it’s obvious that mining facilities will continue to consume power, Shpak said, quoted by Interfax. He further emphasized:

Our position is completely unambiguous — mining must be recognized, regulated and established as an industrial activity.

Bitcoin mining is one of the key crypto-related activities that Russian authorities are now working to legalize, despite Bank of Russia’s call for a blanket ban on all of them. A bill designed to achieve that was filed with the Russian parliament in late April. The draft legislation was recently revised and lawmakers withdrew a proposal to introduce a one-year tax and customs amnesty for mining entities.

Officials in Moscow believe Russia should develop the sector, citing its competitive advantages in terms of abundant energy resources and favorable climate. However, amid western penalties imposed over the invasion of Ukraine, Russian miners have been targeted with sanctions to deny the country opportunities to circumvent the restrictions. Russia’s share in the average global monthly hashrate has dropped to 4.66% this year.

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bill, Bitcoin, Bitcoin mining, consumption, Crypto, crypto miners, crypto mining, Cryptocurrencies, Cryptocurrency, draft law, Electricity, Energy, Hashrate, Legislation, Miners, mining, power, Regulation, Regulations, Russia, russian, share

Do you think the electricity consumption in Russia’s crypto mining sector will continue to grow after the industry is regulated? Share your expectations in the comments section below.

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Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.




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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Bitcoin price action decouples from stock markets, but not in a good way

This week the stock markets began to flash a little green and Bitcoin (BTC) is decoupling from traditional markets but not in a good way. The cryptocurrency is down 3% while the Nasdaq Composite tech-heavy stock market index is up 3.1%.

May 27 data from the United States Commerce Department shows that the personal savings rate fell to 4.4% in April to reach the lowest level since 2008 and crypto traders are worried that worsening global macroeconomic conditions could add to investors’ aversion to risky assets.

For example, Invesco QQQ Trust, a $160 billion tech company-based U.S. exchange-traded fund, is down 23% year-to-date. Meanwhile the iShares MSCI China ETF, a $6.1 billion tracker of the Chinese shares, has declined 20% in 2022.

To get a clearer picture of how crypto traders are positioned, traders should analyze Bitcoin derivatives metrics.

Margin traders are becoming more bullish

Margin trading allows investors to borrow cryptocurrency and leverage their trading position to potentially increase returns. For example, one can buy cryptocurrencies by borrowing Tether (USDT) to enlarge exposure.

Bitcoin borrowers can only short the cryptocurrency if they bet on its price decline and unlike futures contracts, the balance between margin longs and shorts isn‘t always matched.

image
USDT/BTC margin lending ratio at OKX exchange. Source: OKX

The above chart shows that traders have been borrowing more USD Tether recently, because the ratio increased from 13 on May 25 to the current 20. The higher the indicator, the more confident professional traders are with Bitcoin’s price.

It is worth noting that the 29 margin lending ratio reached on May 18 was the highest level in more than six months and it reflected bullish sentiment. On the other hand, a USDT/BTC margin lending ratio below 5 usually is a bearish sign.

Options markets entered “extreme fear”

To exclude externalities specific to the margin markets, traders should also analyze the Bitcoin options pricing. The 25% delta skew compares similar call (buy) and put (sell) options. The metric will turn positive when fear is prevalent because the protective put options premium is higher than similar risk call options.

The opposite holds when greed is prevalent, causing the 25% delta skew indicator to shift to the negative area. In short, if traders fear a Bitcoin price crash, the skew indicator will move above 8%. On the other hand, generalized excitement reflects a negative 8% skew.

image
Bitcoin 30-day options 25% delta skew at Deribit exchange. Source: Laevitas.ch

The 25% skew indicator has been above 16% since May 11, indicating an extremely unbalanced situation because market markets and professional traders are unwilling to take downside pricing risks.

More importantly, the recent 25.6% peak on May 14 was the highest ever 25% skew in Bitcoin’s history. Presently, there is a strong sense of bearishness in BTC options markets.

Related: Falling Bitcoin price doesn’t affect El Salvador’s strategy

Explaining the duality between margin and options

A potential explanation for the divergent mindset between BTC margin traders and option pricing could have been the Terra USD (UST) collapse on May 10. Market makers and arbitrage desks might have taken heavy losses as the stablecoin lost its peg, consequently reducing their risk appetite for BTC options.

Moreover, the cost of borrowing USD Tether has dropped to 3% per year on Aave and Compound, according to Loanscan.io. This means traders will take advantage of this low-cost leverage strategy, thereby increasing the USDT/BTC margin lending ratio.

There is no way to predict what would cause Bitcoin to end the current bearish trend, so access to cheap financing does not guarantee a positive price action.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

LUNA Reboot Plummets Over 70% Just Hours After Debut

Terraform Labs early Saturday launched a new version of the Terra blockchain, “Terra 2.0,” with freshly minted LUNA tokens.

Roughly 12 hours later, LUNA (labeled LUNA2 on some exchanges) had shed almost 73% of its initial value, trading as of this writing for $5.18, according to data compiled by CoinMarketCap. It peaked earlier at $19.54.

LUNA tokens became available for trading at the bybit cryptocurrency exchange about 10 minutes after launch, and about an hour later, Kucoin also announced it was enabling LUNA trading.

Currently, LUNA is traded across seven different exchanges—Bybit, Kucoin, Kraken, MEXC, OKK, Bitrue, and BingX—according to CoinMarketCap. None of the exchanges have enabled LUNA futures trading.

Terra CEO Do Kwon was mostly quiet on Twitter today other than retweeting announcements from exchanges.

“Credibility is the ultimate currency,” tweeted Binance CEO Changpeng Zhao shortly after Terra 2.0 debuted. (Binance was among those offering support for Terra’s new blockchain, however.)

Many people still appear skeptical about Terra 2.0. Crypto YouTuber Ben Armstrong flat out said: “Don’t buy LUNA ever again.”

Other Twitter users said they were sticking by the original LUNA, since renamed Terra Classic (LUNC) and referred to by some as LUNA Classic, which is down 29% over the past 24 hours to $0.00009031, according to CoinMarketCap. LUNC peaked last month at $119.18 before a historic crash that wiped out tens of billions of dollars in value.

Out of 1 billion new LUNA tokens, only 21 million were airdropped on Saturday and added to the circulating supply, according to CoinMarketCap. The rest of the tokens will be airdropped in phases.

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Bored Ape and Cryptopunk Values Wobble — During the Last Month, Blue-Chip NFT Floor Values Dropped Over 50%

While the crypto economy has dropped considerably in value during the last few weeks, seven-day statistics indicate non-fungible token (NFT) sales are down 17.32% lower than last week. Data also shows NFT floor values have tumbled a great deal during the past month as some of the most popular NFTs are selling for a lot less these days.

The Once Bubbly NFT Industry Faces Its First Crypto Bear Market, Non-Fungible Token Interest Is Down and Sales Slide

NFTs have made their mark over the last 12 months raking in billions of dollars in sales, but the NFT trend is currently experiencing its first crypto bear market. The market carnage during the past few weeks has taken a toll on NFT sales and the top floor prices stemming from some of the most popular collections.

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Worldwide GT data covering the search query “NFT” from the week of January 16-22 to May 22-28, 2022.

Interest in non-fungible tokens has waned as the search query “NFT” has dropped significantly according to Google Trends (GT) data. During the week of January 16-22, worldwide GT data for the search term “NFT” hit the top score of 100, but this week the search query term is 25.

While NFTs are still selling, weekly sales are down 17.32% lower than the week prior and NFT sales measured last week were down 64% lower than the week before. It’s safe to say by looking at market metrics, that the Terra LUNA and UST fiasco impacted the NFT space as well.

Last week a great number of blue-chip NFT collections saw floor values drop and today the values are much lower. Moreover, a few popular NFT collections reached all-time highs in terms of floor values just 34 days ago, and current statistics show they now sell for a lot less.

Bored Apes, Proof Collective, and Cryptopunks Are Selling for Less Than Half of What They Sold for Last Month

On April 23, 2022, the NFT collection called Proof Collective had a floor value of around 129 ether and at that time, a single ethereum was exchanging hands for $2,950 per unit. This means that 34 days ago, the least expensive Proof Collective NFT was around $380K.

Bored Ape and Cryptopunk Values Wobble — During the Last Month, Blue-Chip NFT Floor Values Dropped Over 50%
The most expensive NFT floor values stemming from NFT collections like Bored Ape Yacht Club (BAYC), Proof Collective, and Cryptopunks have all dropped significantly during the past month.

On that same day, Bored Ape Yacht Club’s (BAYC) floor value was approximately 123 ETH or $362K using ether exchange rates that day. The least expensive Cryptopunks NFT had a price tag of around 59 ether on April 23, which was around $174K back then.

Today, the Proof Collective NFT collection has a floor value of around 75 ether, and using ETH values recorded on May 27, the least expensive Proof Collective NFT today is selling for $130K. The floor value of the BAYC collection is $153K on Friday or 87.98 ETH and Cryptopunks’ NFT floor is 46.5 ETH or $80K.

34 days ago, Bored Ape Chemistry Club NFTs had a floor of around 45 ether and today, the lowest value is 39.5 ether. Similarly, Mutant Ape Yacht Club (MAYC) NFTs had a floor value of 33 ETH a month ago and today the lowest is 17.2 ether.

The Otherdeed NFT collection currently commands the top sales in terms of all the NFT collection sales this past week. Otherdeed sales amounted to $23 million during the last seven days but sales are down 14.52% lower than last week. One particular NFT collection called Goblintown, recorded $21.9 million in sales and jumped a whopping 1,744,444% higher than last week in terms of sales volume.

The top three most expensive NFTs sold this week stemmed from the Otherdeed NFT collection. Bored Ape #2664 was the fourth most expensive NFT sold at 199.99 ether ($390K) two days ago, and Cryptopunk #3764 was the fifth most expensive as it sold for 190 ether ($389K) four days ago.

In addition to the top three most expensive NFT collections in terms of floor value, non-fungible token collections like Clonex, Doodles, Azuki, Veefriends, Bored Ape Kennel Club, and more have all seen floor values drop much lower than the values recorded 34 days ago on April 23.

Tags in this story
BAYC, cryptopunks, Cryptopunks NFT sale, ETH, ether, Ethereum (ETH), Floor Values, Floor Values Drop, Goblintown, Google trends, GT Data, MAYC, nft, NFT collecting, NFT collection, NFT floor values, NFT sales, NFTs, Non-fungible Token, Non-Fungible Token Interest, Otherdeed, sales, Sales Volume

What do you think about the NFT sales dropping and blue-chip NFT collections seeing their floor values drop lower? How do you envision the NFT industry faring in a crypto bear market? Let us know what you think about this subject in the comments section below.

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Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.




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