Crypto News: LUNA Collapse, UST, BTC, Bear Market & More!!

Foreign [Music] To the coin Bureau weekly crypto review Here are this week’s top headlines in The crypto news [Music] Terra tragedy cryptocurrency’s largest Algorithmic stablecoin enters a death Spiral causing a crypto Market to Crumble what the hell happened Bear Market begins coins and tokens see Double-digit drawdowns marking the first Lower low for many in more than a year How low can we go ETFs down under Australia approves its First two crypto ETFs as the SEC Examines pending ETF applications in the United States could this cause a crypto Market reversal [Music] Cash for crypto companies flow kucoin And chain analysis collectively raise Over one billion dollars to expand their Operations here’s why that’s important Twitter turmoil Tesla CEO Elon Musk puts His acquisition of Twitter on hold after Questions arise about Twitter’s true User count is the dead internet theory True And a closer look at last week’s top Performing cryptos and where they’re Headed next all this and More in just a Moment Good morning afternoon or evening thank

You for tuning in my name is guy and What you’re about to see is educational Content not Financial advice you can Find any topics you’re looking for using The timestamps in the video timeline and Now for today’s top stories Last week the crypto Market experienced What can only be described as the Blackest of Black Swan events to date This was the total collapse of Terror Which saw over 40 billion dollars lost In a matter of days Those who held terra’s Luna or UST Stablecoin effectively saw those Holdings reduced to zero for anyone Watching who was affected in such a way I have two things to say first and Foremost money can always be made back No matter how bad your financial Situation might be so long as you’re Alive the situation can be resolved Consider for a second the fact that You’re even alive to begin with is proof That you come from a long line of Fighters you have it in you to overcome This obstacle just like your ancestors Overcame theirs The second thing I want to say is that If the terror situation has taken your Mind to a dark place please consider Reaching out to those who can offer Support I’ve left a few links in the Description if needed So what the hell happened well the short

Answer is nobody really knows for sure At least not yet the situation is Evolving information is still coming out And Tara tweeted that it will be Releasing a detailed post-mortem in the Near future As for the long answer I’ll be doing an In-depth video about terror’s collapse Later this week once more information Has come out but I’ll give you the cliff Notes version based on the information We have now So to fully understand what happened you Need to be familiar with terror’s mint And burn mechanism for stable coins Specifically UST a decentralized stable Coin that was once pegged to the US Dollar don’t worry I’ll keep it simple So Minting one UST required burning one Dollars worth of Luna and vice versa so If you had one Luna and Luna was worth Ten dollars you could burn it to Mint 10 UST conversely if you had 10 UST you Could burn it to Mint 1 Luna again Assuming Luna was trading at ten dollars If UST was trading at say 1.50 this Created the incentive for lunar holders To burn their coins to Mint UST and Instantly make a 50 profit for selling UST for say another stablecoin This increased UST circulating Supply And the cell pressure restored ust’s one Dollar Peg the same process worked in

Reverse Now when the crypto markets were going Up terra’s mint and burn mechanism Worked quite well because Luna’s price Was going up with the rest of the crypto Market along with the demand for stable Coins such as UST In Tara’s case most of the demand for UST was coming from anchor protocol Which I won’t get into here Now when the crypto markets dipped Terra’s mint and burn mechanism didn’t Work so well this is because Luna’s Price started to go down along with the Demand for stable coins As a result of the mint and burn Mechanism I just mentioned a reduction In the demand for stable coins meant UST Dropped below its one dollar Peg as People sold it off for actual Fiat to Cash out With UST below its Peg many UST holders Began to burn their UST to Mint Luna Since they would get one dollars worth Of Luna in exchange Logically they had to sell that Luna for Something else right away to actually Get their dollar when Luna was crashing And this caused Luna to crash even more The end result was something called a Death spiral which has been the Unfortunate fate of many algorithmic Stable coins and this is basically what Happened to Terror

To try and prevent this death spiral a Non-profit that coordinates terror’s Development called the lunar Foundation Guard had been accumulating billions of Dollars of BTC which could be exchanged For UST in the event of a market Meltdown This would take the cell pressure off Luna and supposedly stop a death spiral From ensuing The only problem was that the lunar Foundation guard was forced to sell its Billions of BTC to protect UST almost as Soon as it had finished accumulating Because UST started losing its Peg faster than Anticipated supposedly because of a Whale who was dumping UST on exchanges With the BTC backstop gone Luna started Crashing as UST holders began burning Billions of UST to Mint Luna and the Rest is history again I’ll be doing an In-depth video about what went down in a Few days as there are many many more Layers to this sorry story Now as many of you will know I wasn’t Quite convinced that we were in a bear Market just yet this is because btc’s Price had been consistently setting Higher lows since last May as had many Altcoins Well it’s safe to say that the bear Market is beginning to set in now Because BTC set a new lower low of under

27k a price that we haven’t seen since Late 2020. The key word here is beginning because We’ve seen BTC suddenly reverse out of Lower lows before most notably last May If this trend of lower lows continues However then we will officially be in a Bear market and I know many of you would Argue we’re in one already This is understandable given all the Factors that are weighing down the Crypto market and the first is obviously Terrace implosion Terra’s lunar Foundation guard sold Three billion dollars of BTC in its Attempt to protect UST and though most of this BTC was Probably sold over the counter I suspect Some or even most of it was sold on the Open market for UST Whether this cell pressure had any Meaningful impact on btc’s price Likewise remains to be seen but it’s Arguably irrelevant given that BTC was Being dragged down by a series of other More significant factors One of these was BTC liquidations which Were likewise in the billions another Significant factor was the temporary Debegging of tethers usdt stablecoin Which dropped to 95 cents now this was a Seriously bad sign because most cryptos Trade against usdt Nobody knows exactly why usdt

Temporarily lost its Peg but one theory Is that it had to do with concerns about The regulatory scrutiny of stable coins Following the collapse of Terror If you’ve watched my video about the Assets backing stable coins you’ll know That tether hasn’t exactly been Completely transparent about the Reserves backing usdt hence the possible Regulatory concerns Meanwhile the stock market was taking a Nasty tumble in anticipation of the Release of April’s inflation figures for The United States which came out on Wednesday for those who don’t know BTC Has recently been highly correlated with The stock market The CPI for April came in at 8.3 percent Which was 0.2 percent lower than the Month before but 0.2 percent higher than What the markets had been pricing in This caused both the stock market and The crypto market to continue their Declines If you’re wondering why it’s because High inflation means the Federal Reserve Is likely to continue raising interest Rates more aggressively than it Otherwise would I’ll actually be doing a video about the Federal reserve’s recent Financial Stability report later this week too so Stay tuned for that As for altcoins select smart contract

Cryptocurrencies took the market Downturn particularly hard and this is Again because of Terror it’s UST Stablecoin was in dozens of D5 protocols And terra’s own anchor protocol had Recently expanded to Avalanche not only That but terraform labs and terra’s Lunar Foundation guard had collectively Purchased 200 million dollars in avex in Early April leading to fears that avax Would be liquidated to protect ust’s Peg And it looks like some selling did in Fact take place In terms of how long this downturn could Last it’s really anyone’s guess but if Previous bear markets are anything to go By we might not see the bull market come Back until bitcoin’s next halving in Late 2024. In terms of how low we could go many Believe that BTC could fall as low as 20K given that this was the high of the Previous bull market and BTC has never Dropped significantly below its previous Bull market top during bear markets Note that the downturn will be twice as Bad for most altcoins doing your own Research is going to be more vital than Ever in the coming weeks and months and Luckily we have plenty of videos that Can help you with that anyways despite All the crypto Market Carnage there have Actually been a few bullish developments That seem to have fallen off the radar

And one of these was one of Australia’s Stock exchanges finally listing three Cryptocurrency ETFs For context Australia was scheduled to List these three crypto ETFs more than Two weeks ago but the listings were Suddenly delayed because of an issue With an unspecified service provider Behind the scenes now if you’ve watched Any of my videos about crypto ETFs You’ll know that spot ETFs are Especially important because they Provide direct exposure to the asset in Question in other words the ETF issuer Must go and actually buy and sell Physical BTC or eth in response to the Demand for their ETF As you might have guessed all three of Australia’s cryptocurrency ETFs are Physically backed with two for BTC and One for eth Though each ETF has its own way of Achieving a spot status the end result Is the same direct buying pressure for BTC and eth Unfortunately Australia’s cryptocurrency ETFs listed when the crypto Market was Collapsing and this is probably why they Only saw 1.3 million dollars of trading Volume combined This is significantly below the one Billion dollars that some experts were Projecting Even so these three crypto ETFs are

Significant because they make Australia The second America analogous country to List spot cryptocurrency ETFs the first Being Canada early last year With Australia and Canada embracing These investment vehicles it puts even More pressure on Regulators in the United States to do the same and approve Spot cryptocurrency ETFs in their Jurisdiction The regulator in charge of this is of Course the SEC and it currently has a Handful of spot Bitcoin ETF applications Sitting on its desk These applications seem to have a solid Shot at being approved because they Weren’t rejected along with others in Previous SEC decisions One of these spot Bitcoin ETF Applications comes from grayscale which Is looking to get approval to convert Its 20 billion Bitcoin trust into a spot Bitcoin ETF Luckily for grayscale the SEC seems to Be open to approving its ETF application At least according to a recent meeting Between the two parties the final Decision date will be July the 6th so Mark your calendars another pending spot Bitcoin ETF application comes from Wisdom Tree and the SEC recently opened Its doors to comments about this Application I should point out though That Wisdom Tree was rejected by the SEC

Earlier this year and had to refile In any case it appears that progress is Being slowly but surely made towards the Approval of an American spot Bitcoin ETF But as Australia’s own listing of spot Crypto ETFs has shown they may amount to Nothing more than a fart in the wind if They’re listed when interest in the Crypto Market is tanking In the interim crypto companies and Projects will continue to raise billions Because even though crypto prices have Been plummeting the fundamentals have Only been improving For starters the Dapper Labs crypto Project flow which announced a whopping 725 million dollar ecosystem fund Featuring some of the most prolific VCS In the crypto industry Oddly enough flow CEO Rohan garagosloo Specified on Twitter that most of this Money will go towards investing in other Crypto projects rather than Incentivizing developers to build on Flow It’s not entirely clear where exactly All this Capital will flow pun intended But given flow’s close relationship to Big brand names like the NBA NFL and UFC Chances are these investments will Involve products for similarly popular Brands Next there’s cryptocurrency exchange Kucoin which raised 150 million dollars

From various crypto VCS to develop D5 Related products including a D5 wallet And D5 protocols on the kucoin community Chain for those unfamiliar with kucoin It’s easily one of the best Cryptocurrency exchanges for Up-and-coming altcoins and if you’re Interested in opening an account you can Check out my tutorial and use the link To get a fee discount you are welcome Anyhow last but not least we have chain Analysis the infamous blockchain Analytics company that’s tracking all of Your cryptocurrency transactions Chain analysis recently raised 170 Million dollars from a series of Institutional investors and this is Actually very good news that’s because Chain analysis is surprisingly Pro-crypto and let’s just say that this Isn’t exactly the case with other Blockchain analytics companies out there Analysis’s recent funding round gives it The largest War chest of any blockchain Analytics company which is therefore Good news with some luck this will Translate to even more crypto adoption At both the individual and institutional Level never mind the regulatory guidance That comes from objective on-chain Analysis You can find out which analysis said in The recent crypto crime report by Watching my video about that using the

Link in the description Anywho another crypto related company That’s been making the headlines lately Is Twitter and that’s because Elon Musk Is currently in the process of acquiring It for 44 billion dollars This is relevant to crypto because Elon Has already hinted on many occasions That he plans on integrating more crypto Elements with the social media platform There’s even been speculation that Elon Aspires to combine crypto and Twitter With starlink for interplanetary Payments and communication which let’s Admit it would be pretty awesome By the way U.S politicians will be Holding a hearing about UFOs for the First time in 50 years this Wednesday And I’ll leave a link to the live stream In the description I digress Now as amazing as all these ideas sand At the moment the focus is on elon’s Actual acquisition of Twitter which Seems to have hit a snag after he Started to question Twitter’s claim that Only five percent of its users are spam Or fake accounts if you’re a fan of Crypto and have been on Twitter for more Than 10 seconds you’ve probably Encountered your fair share of spammers And fake accounts already especially if You’ve dared to criticize any crypto Project with a militant community It seems that Elon intends on solving

This issue by making it possible for Real users to verify their identities Via kyc or even just by providing a Deposit of some collateral be it Fiat or Crypto to create an account Creating a cost for spammers and fake Accounts would theoretically reduce Their presence naturally Elon wants to Make sure that Twitter’s user base is Actually real before pouring tens of Billions of dollars into the company and The fact that Elon doubts Twitter’s five Percent fake accounts figure suggests That he thinks this figure is much Higher now this ties into something Called the dead internet Theory which Posits that most of the interactions you Have online are not genuine meaning they Involve Bots and fake accounts and that Most of the content you see on the Internet was generated by Ai and the Like Now while the second part arguably Borders on conspiracy theory even Mainstream media Outlets have come out In recent years to ask whether the dead Internet Theory holds some water Specifically because of all the abnormal Interactions on Twitter and other social Media platforms I suppose it’s quite Comforting to think that quite possibly Most of the unpleasant types out there In cyberspace aren’t actual humans after All perhaps There’s Hope for our species

Yet Turning to the charts we can see that BTC is sitting at around 30k which is Admittedly below the support levels I Suspected we could fall to last week As scary as this looks I’ll remind you That this marks the seventh straight Week of red for BTC and I think it’s Been something like a decade since BTC Has seen this long of a decline I really want to say that a recovery Rally is imminent but I must confess That what I’m currently seeing looks More like a bear flag that could take BTC to the low 20ks alternatively we Could see a small relief rally to the Upside to around 33 or 34k where BTC is Likely to experience lots of resistance Last week’s top performing Cryptocurrencies were maker Dao the Decentralized Fey stablecoin the Centralized true USD stablecoin the Decentralized die stablecoin and the Centralized usdc stablecoin talk about Clutching and straws starting with make A doubt the maker token went on a tear After Terror collapsed and this is Simply because Believers in Decentralized stable coins move their Money into the next best thing which is Make a dab Not surprisingly Maker’s recent rally Announced to nothing more than a blip on Its long-term price charts note that

Defy tokens of all kinds have been Lagging behind the rest of the crypto Market over the last year which is quite Unfortunate Next up we have the FAE stablecoin which I mean is the stable coin so it didn’t Really pump per se as I just mentioned Faye is a decentralized stable coin and It seems it received some of terra’s Mercenary Capital as well It’s the same story with true USD die And usdc and I will note that it’s Interesting to see 50 50 representation Of decentralized and centralized stable Coins on this list even though it’s Somewhat arbitrary It’s even more interesting to see which Decentralized stable coins have Maintained their Peg despite the recent Dip the one that caught my eye the most Was magic internet money because many Abracadabra users were using interest Bearing UST from anchor protocol as Collateral to Mint Mim This just goes to show that Decentralized stable coins aren’t all Bad and they’re definitely needed Because decentralization isn’t just Important at the blockchain layer more About that in an upcoming video And that is all for today’s coin Bureau Weekly crypto review if you enjoyed it You know what to do hit that like button Subscribe button and Bell icon too note

That there’s only two weeks left to try Your luck at winning one of ten prizes Of 0.1 BTC that’s more than three grand Which is still a pretty penny despite The recent Market travails Additional details can be found in the Description just below me thank you so Much for watching folks and I’ll see you All in next week’s episode Foreign [Music]