Is Bitcoin at a critical level

 Is Bitcoin at a critical level | What is the situation in the cryptocurrency market after the crisis

Bitcoin is struggling to recover after the crypto crisis. The fluctuating leading cryptocurrency could not hold on even though it exceeded the critical level of 30 thousand dollars. Experts are of the opinion that cryptos have passed a major test.

Bitcoin is at a critical level  The latest situation in the post-crisis crypto market

After the Luna crisis in the crypto market, Bitcoin is struggling to recover. While Bitcoin is just below the critical level of $ 30,000, it is watched whether the value above $ 2 thousand can be preserved in Ethereum.

The market is trying to recover after the declines due to the UST and LUNA crisis, with the US April inflation exceeding expectations by 8.2 percent last week.

Bitcoin, which sees the level of 25 thousand dollars during the week, is around the critical level of 30 thousand dollars.

The latest state of the Crypto Market

Although Bitcoin rose to $ 31 thousand 300 in the first trading hours of the week, then it was withdrawn below $ 30 thousand. 

While the daily decline in Bitcoin exceeded 1 percent, the leading cryptocurrency was traded at $ 29 thousand 450.

Ethereum traded at $2,20 in the morning, Cardano rose 6% to $0.56, and Solana rose 6.4 percent daily to $53.7. Dogecoin also traded at $0.088 with partial gains.

According to data from CoinMarketGap, the total crypto market volume decreased from yesterday to $1.27 trillion.

Latest status in LUNA and TERRA

The stable coin TerraUSD (UST) is trading at $0.18, well below the $1 target, while Luna is down to $0.0002.

While Luna was recently delisted by Binance, the asset of this cryptocurrency is still very volatile.

What happened

Over the past week, concerns about rising inflation and rising interest rates have triggered a sell-off in cryptocurrencies, which are seen as risky investments. Then, the manipulation of the Terra community and its cryptocurrencies TerraUSD (UST) and Luna caused a massive panic selling in the market.

After the UST, which should be a stable cryptocurrency, broke the $ 1 level, Luna, who wanted to maintain stability, burned its reserves, combined with panic selling, Luna fell hard from the $ 100 level and approached zero.

While the loss in Luna was 99.9 percent, Bitcoin, Ethereum, and many altcoins crashed hard in the last week.

During this time, approximately 250 billion dollars were sold on weekdays in cryptocurrencies.

Has Bitcoin passed the test

While the crisis continues in the crypto market, the risks posed by inflation and the acceleration of the US Federal Reserve's (Fed) tight monetary policy increase the downward pressure on crypto assets.

Alex Mashinsky, CEO of the crypto platform Celsius Network, who made evaluations on the subject, stated that the Bitcoin and crypto money market went through a real test due to the tightening monetary policy and inflation-oriented strategies of the US Federal Reserve.

Mashinsky stated that he expects the Fed to do everything it can to curb inflation and that this may have losses on risky assets such as cryptocurrencies.

Growth is expected to slow down due to the Fed's rate hikes. The slowdown in growth means increased risks to the economy. 

Due to this expectation, investors have recently been avoiding assets such as the stock market and crypto and turning to safer investment tools.

Decisive from a famous billionaire

As the crypto market continues to shake, the future of digital assets continues to be the subject of discussion. 

While it was a question of whether cryptos will become an indispensable part of daily life in the future, a remarkable statement came from a famous crypto billionaire.

Sam Bankman-Fried, founder and CEO of cryptocurrency exchange FTX, criticized the digital currency for its inefficiency and high environmental costs, saying Bitcoin has no future as a payment network, the Financial Times reported today.

The famous billionaire said that Bitcoin does not need to survive as a cryptocurrency, but may have a future as a commodity like gold.

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