Crypto Emergency! Bitcoin Crashes, UST & LUNA Melt Down!
Its been pretty crazy over the last 24 hours, so in todays, video im gon na be breaking down the situation. For you take a look at the bitcoin charts talking about the ust luna situation, as well as taking a look at what happened with the inflation data and some of the crazy stats affecting the stock markets, which, of course, are affecting the crypto markets. My names lark everyday, i make videos talk about cryptocurrency investing if you do like that topic, if you do like stay up to date with what is happening in the cryptocurrency industry, well, tap on the thumbs up button be much appreciated. Now lets go ahead and get into the charts so just quickly, taking a look at the bitcoin chart. Same kind of stuff weve been talking about for the last few days here. Just updates on that. I suppose we can see here. Bitcoin has come actually under our key zone of price support here, so this is actually the lowest price today right there. This is the lowest price that bitcoin has been since all the way back here, early january 2021, so about 18 months that was lowest price in about 18 months. Right now for bitcoin now we did close the daily candle within this area of price support. Lets see if we can close the next daily candle in there, obviously a fear panic craziness going on in the markets right now. We also again saw a massive massive volume day yesterday for bitcoin, so outstripping the volume of the last two days before that, both of which were again record volume days for the year and some of the biggest volume days that weve seen in well over a year.
Last time was uh may 19th, okay, not technically over a year 51 weeks ago you know, but its been a while been a while, since weve seen this kind of massive volume coming in to the market. Obviously, a lot of panic selling going on, but also some panic buying going on. I did buy some bitcoin today and i know thats crazy markets are going crazy right now, but i did get my buy orders for bitcoin filled at twenty. Eight thousand three hundred dollars lets see if it keeps going down man holy cow, bitcoin, its going crazy here man. We also see the rsi for bitcoin continuing to show an oversold reading again. Historically, this time has been a time of potential profitability for the people who are buying in this zone. That being said, the rsi can fall further. It can be more oversold. It can stay oversold for literally weeks on end. So just you know, keep that in mind. Without a doubt, basically, what we have seen today has been like a nuclear meltdown of the cryptocurrency markets, ust losing its pay. It got down to about 20 cents. At one point last night, absolute insanity, higher than expected inflation data, came out, causing panic in the stock market were gon na talk about that. At the end of the video, the luna coins gone down by, like 95, its just been absolute craziness, although, as wrecked capital does point out after seven straight red weekly candles, a relief technically needs to happen in the not the distant future.
Question is how strong or weak a relief it is going to be theres been a lot of downward price action. This is a uh were coming up on a record. Now of you know, weekly candles in the red, pretty crazy stuff here were living through historic times, guys that should be exciting right, holy cow. This is the alt coin. Market cap you can see. Tara is down 99.2 percent in the last seven days. Unbelievable fall from grace for the uh luna coin. We also see a lot of other altcoins taking incredible hits phantom down 65 stepping down 65 percent eight coin down 60 thats, some serious serious bear market panic, capitulation, vibes that im seeing right here in the crypto currency market. So, by the way i just want to mention too the next a major area for price support for bitcoin. If we fail to keep the price around this purple box here, we got a long way to fall. The next major area of price reports down around 22 000 now we could find something around like 25 000 in this little region. Here, although thats not you know the most major area of price support to exist in in the world here, but technically its an area support too, but i think this area down here around 22 000 would be the more much more significant one, especially considering that is Where the 200 week, simple moving average, also runs into that area of price support, real quick too, on the three day charts, we can keep, of course, an eye on the death cross coming up here, getting close getting close to confirmation, although i feel like in this Situation were to get the death cross happen, but thats not necessarily going to lead to further self.
You have to remember. The death cross is a lagging indicator right, its a laggy indicator. It shows the markets already freaking, cooked and yeah that markets looking pretty gosh, darn cooked to me, patrick hansen, pointing out as well just how historic, the last 48 hours have been for the cryptocurrency market. So a top 10 cryptocurrency luna lost 99 of its value. This week that doesnt normally happen in the cryptocurrency markets. Thats a historic moment. The third largest stablecoin ust lost its peg in a big way, leading to huge liquidations, massive loss of of money and wealth, and look, i just want to say if you got hit really hard by the ust situation and youre just freaking out youre losing it. I got ta say just go out for a walk man get get out of the house. Dont do anything crazy, i mean look, i know youre. We can be looking at the situation and going man its all over im. Never gon na make that money back. This is crypto theres, so many chances out here for you to make that money back talk to friends, talk to family right, dont dont make any crazy decisions that you cant reverse right. I know theres already been lots of rumors going around twitter of people who have committed suicide over the collapse of ust people who had their life savings in the anchor protocol. So please please, please, if youre suffering, if youre hurting talk to people reach out – and i know its its definitely a sign of the markets to be talking like this, but its true its true.
I know a lot of people are really hurting after the collapse of luna after the collapse of ust, you have to keep in mind too. Tara was the second biggest d5 ecosystem by total value locked, and the anchor protocol was, i think, a top three d5 protocol until like three days ago, so crazy, crazy stuff happening here in the markets. Now right now, we are still in a situation, though. Ust still has a market cap of 10 billion dollars. However, the luna coins only worth around 2 billion dollars, uh approximately probably worth a bit less now as it keeps falling. So you have to start asking yourself the question. What the heck is gon na happen to ust in this situation, where luna the coin thats supposed to be collateralizing ust is worth like a fifth to a tenth of the market cap of ust. Their bitcoin wallet is also empty. Now i cannot confirm that luna has sold their bitcoin right. They said they were putting some into market making with ust and bitcoin thats, where a billion and a half it was supposed to be going, but we dont know did they sell their bitcoin hard to say, but we do know for certain that their wallet is empty. Theres no bitcoin left in the luna foundation wallet so its a rough situation all around for uh, ust and luna holders. So im out im out of usc and im out of luna now luna i was lucky to get out at six dollars, which is actually the price that i bought it for last year.
Now, during that time i did take my capital out and then i did also take profits on basically half of my luna for 10x, so yay. For me, i was able to get some gains out of luna and not lose a truckload of money on it. That being said, i did lose money on ust, so i had money in the anchor uh protocol. I also had money in a pool on curve finance, which was only supposed to have 25 exposure to the ust stablecoin. But two days ago i go to get my money out. The pool has been rated. Almost only ust is left at that point. Leaving me holding the bag of that pool rough situation so way overexposed to ust um, not a good feeling by any means. Obviously, now i did manage to get out of it for around a 22 loss, which is a lot obviously, especially considering it was a decent percentage of my stable coins. Now the silver linings for me and look im not trying to you know, make light of the situation or anything. A lot of people have lost a lot of money, including me. I did lose a bunch of money on this, but the silver lining here for me is that well of that 22 loss about half of that. Actually um gets eaten up by the fact that i had a bunch of ust rewards from anchor. So its really only like a 10 11 12 loss, something like that.
So definitely not as dramatic as it could be. So in total, its like a four or five percent loss from my stable coin stack its a big number but um. At the same time, it hasnt you know, destroyed my portfolio or my ability to uh, invest, moving forward um and the difference that uh. You know the between uh, the basically the loss will be written off as a tax loss. So could be worse. It could be worse right and look. Is the ust stable coin gon na re peg? I dont even care anymore im out im moving beyond it and look. I know a lot of people sold for a lot, a lot more than a 22 loss and if thats you ouch im, sorry, i feel for you crypto man, its just crazy stuff. It really really is and uh these experimental stable coins like ust. Ah, you know damn damn thats. All i can say im happy to be out. I hope that um, if you were in ust, that you got out without too big of a loss that you got out in time, um, maybe it does repay and youre. You know. Youre holding it still and you get you know some kind of payoff in the future for that, but uh im not interested in partaking anymore. Thank you very much thats, my story. Okay, now lets go on to talk about the inflation data, so we did get the inflation data coming out uh yesterday.
So basically, this shows not the best situation um. So we had the inflation data come out now. The the good news is that it seems that march was peak inflation, so march was 8.5 percent april was eight point three percent, so yay, but then the market immediately dumped because the market had been anticipating eight point, one percent. So when it came out and they saw wow crap its actually only eight point – three percent inflation didnt fall as much as we thought it was going to everybody lost their minds. Man, stocks dumped bitcoin dumped the entire cryptocurrency dumped and its crazy to have all this happening at the same time. You have this crazy situation, one of the biggest stable coins that is deeply integrated across multiple blockchains and all kinds of d5 protocols. Suddenly, just taking a big fat dump and then the inflation data comes out and yes, we have hit peak inflation well unless it goes up back up next month, but it looks like we could have hit peak inflation, but it wasnt as low as the market had Wanted it to be, and so you know we had a sell off happen, so we have all these factors weighing super heavy on the cryptocurrency market right now. I also want to share some other um stats here with you from the macro scene. So colin roach points out 35 trillion dollars in global market value has been erased since the beginning of the year, thats 14 of all global wealth has been wiped out during this massive correction.
That includes the one trillion dollars in losses in the cryptocurrency industry. For reference 2008, the great financial disaster of 2008 was a 19 decline. Basically, we are almost as bad. This entire correction in stock markets and all this stuff is almost as bad as two thousand and eight. That is the kind of financial crisis that we are living through right now, its not just crypto. We talk about crypto on this channel, but its the equity markets that are really getting slammed and its spilling over into the crypto currency industry. Also this one here, the number of companies that now traded a discount to net cash has matched the highs following the 2 000 bubble burst holy cow man. Look at this, so that is uh our current high here. This is back at the bubble burst in two. Thousands wowsers wowsers wowsers wowsers yikes thats, some scary data right there, uh john ehrlichman points out. The 50 stocks have lost a combined five trillion dollars in value this year, absolute savagery in the stock markets, savagery in the crypto currency markets – whatd, they say make sure you live in interesting times right. Well, these are interesting times holy cow. Look in a few months time, this will pass. We will get through this im still here, im gon na keep making videos for you guys keeping you updated on the situation as we go through these very turbulent times in the market. Im gon na keep investing im.
Gon na keep trying to provide as much value as i can for you guys, uh in these videos in the newsletter on twitter were gon na, have some fun too, along the way some gallow humor, obviously during these tough times but uh in a few months, well Get past this ive lived through some massive crashes already in the cryptocurrency markets and look. This is a historic crash. I think, in terms of whats happening in the equity markets being one of the worst years ever in equity markets affecting crypto in a massive way. But guess what every market crash in history every bear market in history has ended, we will get through it in a few months time. We can all sit around and tell stories about how we survived the great crash in the bear market of 2022.. Anyway. I hope you guys are staying sane out there in spite of all the the madness happening in crypto land right now. Let me know your thoughts on any of this.