First Mover Asia: Crypto Market Decline Highlights Unpredictability; Bitcoin Maintains $31,000
First Mover Asia: Crypto Market Decline Highlights Unpredictability; Bitcoin Maintains $31,000. Although bitcoin and ether shook, Terra’s LUNA plummeted in Tuesday trade. The Terra ecosystem’s native token has dropped more than 53% in the last 24 hours as the organization’s UST stablecoin continues to fall far short of its dollar peg, and amid reports that the Luna Foundation Guard (LFG), the non-profit established to support the Terra network, is aiming to raise $1 billion to restore this parity.
The dip comes after a 30% loss on Monday. UST was lately in the red by more than 6%. Meanwhile, bitcoin’s 1.4 percent gain constituted an improvement over the previous day, when the largest cryptocurrency by market capitalization fell below $30,000 in early Tuesday trade – the first time it has done so since July 20. Recently, Bitcoin was trading a little around $31,000.
Ether, the second-largest cryptocurrency by market size, excelled during the same time period, climbing around 3.5 percent and trading at around $2,350. Other cryptocurrencies were mixed for much of the day, with AXS down more than 6% but CRO and meme coin SHIB up more than 8% and 10%, respectively.
The crypto business was still feeling the aftershocks of greater geopolitical and economic instability. Coinbase (COIN) missed its first-quarter revenue projections due to a 44 percent drop in trading revenue from the previous quarter. Riot Blockchain (RIOT) also fell short of analysts’ expectations for the first three months of 2022. Cryptos are less volatile.
Tuesday saw a mixed performance from market indices, with the tech-heavy Nasdaq jumping nearly a percentage point and the Dow Jones Industrial Average dipping marginally. Investors will be watching the consumer price index report for April, which is largely expected to reveal that inflation has moderated but prices have remained high.
The crypto business was still feeling the aftershocks of greater geopolitical and economic instability. Coinbase (COIN) missed its first-quarter revenue projections due to a 44 percent drop in trading revenue from the previous quarter. Riot Blockchain (RIOT) also fell short of analysts’ expectations for the first three months of 2022.
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