Is it the end of crypto?

This has been one of the worst weeks for the crypto ecosystem in recent years, as it has been full of controversy and red numbers. In just 8 days, Bitcoin fell by around 30% of its value per unit. And with it, all cryptocurrencies in the market have fallen. Doing a deeper study of the historical behavior of the BTC, we can realize that it is not the first time that it has experienced a fall of this type. On the other hand, considering the theory of crypto market boom and bust cycles fueled by the BTC halving, 2022 was expected to be a year of contraction.

Until then, everything seems relatively normal, however, what has intensified this deep fall has been the controversy caused by two cryptocurrencies: LUNA and UST. This week we have witnessed how the price of LUNA, a cryptocurrency that was in the top 10 by market capitalization, has practically dropped to zero in just a few days.

At the same time and directly related to the above, the Terra USD (UST), the Luna Foundation algorithmic stablecoin, lost its parity with the dollar and it is known that they have liquidated their reserves. Without a doubt, this is an unprecedented historical event for the crypto market and one that we will surely remember for a long period of time.

This situation reminds us of two important things:

1.- Those behind cryptocurrencies are companies, foundations and visionaries who, although they are capable of raising large sums of money for their projects and gaining the trust of millions of users, are also human beings who can make mistakes or make wrong decisions like any of us.

2.- The market in general can behave completely irrationally, therefore, under no circumstances should we risk capital that we are not willing to lose if something unexpected happens.

Regardless of whether LUNA and UST manage to recover or not, the rest of the crypto market will not rest and their analysis needs to continue.

Information from Neetwork Crypto.