Bitcoin continues sideways, ETH Killers lost double digits, LUNA fell 88% after rebirth
In a recent tweet, Galaxy Digital CEO Mike Novogratz believes that Bitcoin will lead the next crypto rally.
The crypto billionaire believes that the price will be able to recover as soon as the US Federal Reserve (Fed) abandons its hawkish monetary policy and stops raising interest rates.
The market is in the process of correcting against the bursting of an asset bubble, which he says is caused by the Fed.
Novogratz also explained that cryptocurrencies are underperforming a lot compared to stocks due to the fact that there is no buyback and huge pension rebalancing is causing a squeeze on stocks.
The largest cryptocurrency fell to $28,253 on Friday (May 27) amid a 2.24% gain in the S&P 500 on the day (+6% weekly) and Nasdaq-100 up 3.18% on the day (+7% weekly).
At the time of writing Bitcoin is flat and hovering around the $28,800 mark. On the weekly frame, the largest cryptocurrency is losing more than 2%.
BTC/USDT. Source: TradingView
Prior to that, Bitcoin’s correlation with the Nasdaq 100 hit a record high, but the leading cryptocurrency now appears to have diverged from equities.
Novogratz predicts that the market will not go up immediately after the collapse of the Terra project in early May. In a most recent tweet, the Galaxy Digital boss said that building revolutionary technology is no easy feat.
What about Altcoins?
While Bitcoin is being held back below $29,000, ETH has lost as much as 10% for the week.
Some of the Ethereum destroyers – layer 1 blockchains that support smart contracts – are among the top losers: Cardano is down 12% to $0.46, Avalanche -19% to $23.53, Algorand -14% to $0.36, NEAR -17% to $4.87 and Solana -15% down to $42 at the time of this writing.
Cosmos, which is structurally different from Ethereum in that it is a network of many smaller blockchains but also offers highly functional smart contracts, dropped 12% to $9.55.
Other notable losses in the top 40 cryptocurrencies this week include Flow falling 13% to $2.39, ApeCoin -19% to $6.31, Decentraland -12% to $0.95, Internet Computer -10% to $7.11, and Elrond -25% to $68.88.
DOGE, after gaining momentum from Elon Musk’s announcement, is now back down and is losing 2% on the day.
The highlight of the day was Terra’s revival from the ashes with the newly minted LUNA token, which became available for trading at crypto exchange Bybit about 10 minutes after launch.
About 12 hours later, however, LUNA (or LUNA2 on some exchanges) is down 88% from its $30 peak and is currently trading at $5 at press time, according to data from Bybit exchange.
LUNA/USD. Source: Bybit
Currently, LUNA is traded on seven different exchanges – Bybit, Kucoin, Kraken, MEXC, OKK, Bitrue, and BingX. There are no exchanges that allow trading of LUNA futures contracts.
Terra CEO, Do Kwon, on the day of his reincarnation, was mostly silent on Twitter other than retweeting announcements from exchanges.
“Trust is the ultimate currency,” CEO Changpeng Zhao of Binance tweeted shortly after Terra 2.0 launched. Binance is one of the platforms that support Terra’s new blockchain.
Many people are still skeptical about Terra 2.0 with Crypto YouTuber Ben Armstrong bluntly saying: “Don’t buy LUNA anymore.”
Crypto Expert Tip: Don’t buy LUNA ever again. Not 2.0, not 3.0, not 3.14.
Sometimes you just have to accept your loss. The experiment failed. Move on.
— Ben Armstrong (@Bitboy_Crypto) May 28, 2022
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