[Bitcoin Now] Luna Fallout Causes $30,000 Level Collapse... Possibility of Further Plunge

[Image source=Yonhap News]

[Asia Economy Reporter Myunghwan Lee] The price of the leading cryptocurrency Bitcoin continued its downward trend, falling below $30,000 due to the collapse of Terra and Luna. Experts have warned of the possibility of further declines in Bitcoin prices.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 10:34 AM on the 24th, Bitcoin was priced at $29,166 (approximately 36.89 million KRW), down 3.44% from the previous day.

Bitcoin prices are falling despite the New York stock market closing higher. On the 23rd (local time), the Nasdaq index, which is tech-stock focused and shows synchronization with Bitcoin prices, closed higher. The Nasdaq index closed at 11,535.27, up 180.66 points (1.59%) from the previous trading day. The Dow Jones Industrial Average rose 618.34 points (1.98%) to 31,880.24, and the large-cap S&P 500 index closed up 72.39 points (1.86%) at 3,973.75.

The cryptocurrency specialized media CoinDesk reported that the fallout from the collapse of the stablecoins Terra and Luna continues. TerraUSD (UST), a stablecoin designed to be pegged to the US dollar at $1, saw its price plummet, which caused the price of Luna, used to stabilize Terra’s price, to also fall, resulting in a massive crash.

For the time being, Bitcoin prices are expected to move within a similar range. Mark Connors, a researcher at cryptocurrency asset management firm 3iQ, said, "Cryptocurrencies will remain within a range until the release of the US June Consumer Price Index (CPI)," adding, "Although market uncertainty remains for now, there will be no collapse."

On the other hand, there are also forecasts that Bitcoin prices could continue to fall further. Scott Minerd, Chief Investment Officer (CIO) of global asset management firm Guggenheim Investments, warned that "most cryptocurrencies are junk, not currency," and that Bitcoin could crash to $8,000. This implies a potential additional drop of more than 70% from the current price. The US economic media CNBC reported that if Minerd’s prediction becomes reality, it would cause even greater pain to the cryptocurrency market, which has already lost nearly $50 billion in the past month.

Meanwhile, the Digital Asset Fear & Greed Index by Dunamu, the operator of the domestic cryptocurrency exchange Upbit, recorded 29.52 on the day, indicating a 'Fear' stage. This is an increase of 1.19 from 28.33 (Fear) the previous day. Dunamu’s Digital Asset Fear & Greed Index is divided into stages of 'Extreme Fear (0?20)', 'Fear (20?40)', 'Neutral (40?60)', 'Greed (60?80)', and 'Extreme Greed (80?100)'. The greed direction indicates increased interest in buying by market participants, whereas moving toward fear indicates a chain reaction of price declines as investors exit the market due to fear of asset depreciation.