Global markets remain uneasy in the short term as financial institutions seek clarity and short term speculators take cover.
Thrill of the ride up turns into fear and lost money
Speculators have shown signs of fatigue in the cryptocurrencies markets. A fear of the long term bearish trend has proven expensive for many traders and is certainly threatening to keep many of the major digital assets within their lower price ranges as they bang up against important technical support levels.
New lows would not be surprising in the major digital assets in the coming days. While influencers may still be heard within the confines of social media, traders may be closing their eyes and ears to the optimistic sounds of ‘backers’ who proclaim now is the time to take advantage of lower prices which glisten across the crypto world. The sound of traders walking away can be imagined easily for the moment.
After being told the crypto roller coaster is safe and that steep climbs, the sudden falls and the rocketing higher of prices are normal and the expected outcome, the bearish trend in the cryptos seen since November of 2021 is hard to ignore. Having been told they will always be satisfied at the end of the ride, speculators have walked away fatigued and over the past two months: in April and May have experienced costly downturns if they have been pursuing the ‘promise’ of reversals upward. The sun is likely to come up again, but predicting the time frames is dangerous.
Shadows caused by storms in TerraUSD and LUNA/USD have hurt the crypto marketplace regarding speculative confidence. Not only did the so-called stable coin TerraUSD lose value, it plummeted and is essentially dead in the water. The coin’s blockchain has been halted and most major exchanges have exiled it to the garbage heap. Having once traded at 1.0000, the last listing per CoinMarketCap is around 0.02694.
Oh wait, there is the ‘new’ Terra Classic to watch, but you shouldn’t. Apparently this is the re-launched version of LUNA/USD and a so-called ‘airdrop’ of Terra 2.0 was awarded to folks holding the now worthless Luna token. However, one has to ask who in their right mind would trust the Terra crypto team to deliver long term value? The word scam comes to mind, and while it is only the opinion of this writer, it might be best to ignore Terra completely and any project they offer to the public. The words ‘no shame’ come to mind.
As of this weekend many of the major cryptocurrencies including Bitcoin, Ethereum, Ripple and Cardano are stumbling near long term lows. Recent consolidation and headwinds do not offer much hope for speculative bullish traders and strong surges higher near term. If a short term trader wants to buy cryptocurrency at this juncture it may prove wise to cash out profits when they are delivered. No doubt long term buyers will have different notions and different risks considerations regarding their objectives and perceptions. Day traders however who are buying via exchanges and speculating on price fluctuations remain in short supply, and this is having an effect on values as the injured folks lick their wounds and try to recover.
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