Luna Induced Cryptogeddon

It's been just over a month since Luna collapsed with it's depegging event and the ramifications of the collapse are causing a cascading effect that continues to send shockwaves across the entire market. those lucky enough to escape early fled with limited liquidity and further provided downward pressure on a market that would, in a few days time continue to buckle under the watch of regulated companies.

Although today's market is a buyers one it provides a stark incite into how regulations have failed and in fact created much of the carnage that retail investors are suffering today.

Just the other day I wrote how Insolvency on the cards for Celsius Network as the regulated company was significantly invested in TerraUST which once destabilised entered a death spiral.

More news is now coming to light that Celsius wasn't the only mainstream company or hedge fund deep in TerraUST with news emerging that the hedge fund Three Arrows Capital is facing insolvency itself.

Further turmoil encompasses TRON DAO who decided to implement an algorithmic stable coin similar to UST. The short lived venture has already suffered having to withdraw assets from Binance as it's stable coin breaks the peg falling to .97c risking another death spiralling asset and further driving the broader crypto market to oblivion.

Bitcoin Bottleneck

Further turmoil is underway with corporate investors heading for the door with the largest inflow of Bitcoin to Exchanges since the tokens inception. On 14 June 59,356 Bitcoin was moved to exchanges to be sold driving the tokens price further down.

Although sales have not caused a drop as we previously saw that was brought on by COVID with many tipping Bitcoin may dive further however, there is a large cohort of buyers continuing to buy up heavily discounted Bitcoin.

Market Cap Dips below $US1 Trillion

For the first time in a few years the total market cap of cryptocurrency has dipped below $US1 Trillion dollars causing panic and excitement as many renter to rally around Bitcoin. This crash has provided a rare opportunity for people to rebuy back into the market at reduced rates.

In 2017 it was retail investors that dominated the crashes and suffered heavy losses but this time around we're seeing hedge funds and regulated companies who over capitalised on their investments crumble and tank the market.

All of it starting on that frightful day of May 6th 2022 when Luna first depegged.

Many have lost their life savings and as always these corporate entities who spent other peoples money will walk away insolvent but many, still in jobs and high standard of life profiting off others income.

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