So the month of may has historically been one of the strongest times for the year for bitcoin's performance, with an average 18 return over the past nine years. Now, as we head into the second half of may, bitcoin is currently down 25. So far this month and last week the cryptocurrency markets experienced one of its largest financial collapses in history following the destructive de-pegging of terra, usd the algorithmic stablecoin native to the terra blockchain. So with all that being said, the question is: what can we expect moving forward? Can the bulls regain control of the market or will the bears remain in power? Ladies and gents in today's video, we'll cover the bitcoin price action, the end of may predictions and the most recent updates coming from the luna foundation guard on what their next and final step will be.

It has been a juicy month of may so far. Quite a disappointment for anyone who has been expecting some more bullish movement. Nonetheless, a lot of interesting things still coming up, like the usual if y'all are enjoying these daily market updates, be sure to drop a like down below and subscribe to the channel. If you haven't done so already and with that being said, let's hop into the computer and see what is going on in the market for today, all right, so the global crypto market cap for today is sitting at 1.27 trillion dollars or a 3.54 decrease over the Last day today, we are seeing a little bit more volume in the market up about 20 since sunday.

If we take a look at the global crypto market cap scale, you'll notice that we do zoom it into the next one year. We are approaching similar to the previous all-time lows of the market now with bitcoin, currently sitting at 29. 660. What i will say here is that in this bear market it has shown that bitcoin has not been adopted enough to be that inflationary, hedge, that many people were hoping and expecting it to be.

So, while inflation is at a decade high a bitcoin last week was at yearly lows and in the past few months, bitcoin has been highly correlated with global markets, including the nasdaq 100 and spy index. Now i know you guys might be wondering, then what in the world is going on with bitcoin, it dropped so many expectations. It's not an inflation hedge, it's still following alongside the tech market and then we're also not seeing the explosive growth of may that we've seen in previous years before so. As of yesterday, bitcoin has had its seven straight week of losses for the first time in its history amidst a downturn in broader markets.

This came about from stricter crypto regulations, warning retail interest and systematic risk in the crypto sector. So we know for a fact that the federal reserve is going to continue to raise those interest rates every single month until inflation starts coming down, and this has already proven to have a negative effect on the market. Going back to what happened. The major headline of last week, ust and luna, pretty much collapsed.

The collapse of this was a result from already pending market movements, where it started coming down from a lot of the negative talks about the macroeconomic circumstances. With regards to the broader investing market in whole. A lot of retail investors went ahead, they lost their life savings or at least a significant portion of their investment portfolio. When we're talking about the loss of luna.

If this didn't affect you, i'm telling you there are a lot of investors who you know even went so as far as talking about suicide watch, just because of how drastic the dip in the market was. Even last week, bitcoin had dropped to a low of 24 000 during ust's meltdown and usdt's brief loss of its peg. According to kaiko research, over 40 billion dollars in value vanished last week from the luna ust graph. They also quoted here last week.

Cryptocurrency markets witnessed one of the largest financial collapses in history, following the catastrophic de-pegging of terra usd the algorithmic stablecoin native to the tara blockchain. As of writing, luna the cryptocurrency that backed ust and once had a market cap of 40 billion dollars is now trading at effectively zero. Having experienced hyperinflation in the trillions as ust holders desperately sought redemptions. Now the indirect consequence of what we witnessed last week has taken a part into the crypto fear and greed index, where even today, we're seeing mass fear all across the board seeing 14 today now i do think it's worth noting that there are a lot of investors Right now still sitting on the sidelines, hoping for another extreme market dip, we even had some price targets for ethereum coming down to support levels of near twelve hundred dollars.

Now, whether or not we do get the predictions of the market coming down even more, my suggestion and my play in this market is that regardless during this time, if you are playing the long-term game, where you're still investing into crypto for the next one to three To five to even 10 years, the price difference, i don't think is gon na, be too drastic from whether you're investing at nineteen hundred dollars for ethereum versus twelve hundred dollars in a long-term run yeah. That could be a decent amount of money, but i do think just the mental fatigue that it can have upon investors, where you're just constantly waiting on the screen checking every single day, multiple times a day for that dip to happen, which may never happen could even Leave you feeling more exhausted within this market, regardless of whatever your strategy is, whether you're a short-term day trader. You like entering the swings or you're someone who uses up leverage and you want to maximize those gains. I think, in times of fear like this, even if you're able to slowly average up those dips and you're going long, that would still be considered a win long term.

The whole point that i'm trying to make here is that, instead of looking at your portfolio trying to find entrances every single time, it might be a lot more better for newer investors to not care exactly. What's going on in the market, dollar cost average steadily and instead of checking the price every single time, it really is just less exhausting and you have a much more opportunity to expand your endurance, at least being an investor which is still very important now last week, Bitcoin liquidity also dried up a bunch. During its crash, we saw a huge decrease in its market depth as panic set in for a contagion, type event. After luna's spectacular collapse, the market depth for the bitcoin usd pair actually dried up on the 12th of may, which is about four days ago, dropping about 25 since the start of the week now, the deterioration in bitcoin liquidity was also visible in spreads, as we saw Bid ask spreads spike on even the most liquid exchanges in response to heightened volatility, as shown in the charts below the market.

Depth and spreads are inversely correlated as the total quantity of bids and asks decrease the cost of placing a trade as measured by the bid. Ask spread increases, spreads, look to have recovered to where they were pre-luna collapsed. However, it appears market depth still has a ways to go as liquidity struggles to recoup after the events last week. Now the importance out of all this is that we need liquidity.

We need that depth within the market in order for us to see higher movement to the upside as well, when we get lower volume continuing to go in and we're seeing a decrease in price oftentimes. This is not a good sign for the overall state of the market now, as stated by investopedia. This right here is really powerful for anyone who just didn't understand what i said, liquidity is essential for any tradable asset, and that includes the cryptocurrency bitcoin. Liquid markets are deeper and smoother, while an e-liquid market can put traders in a position that are often difficult to exit now to conclude with the bottom line, they state, if we look at bitcoin as an asset, it produced lucrative returns for early investors bitcoin, like many Other assets has its issues, and price volatility is going to be one of them.

The liquidity problem is one of many factors that lead to sudden movements in the bitcoin price now pulling us out of some of this on-chain analysis. We have on top of that, still real world situations developing, and this is going to be the threat of russia, doing something ridiculous and causing another black swan event in the markets for anyone who hasn't really caught up with. What's going on globally, there's recent news of finland and sweden looking to join nato due to russia's invasion of ukraine. Putin went ahead and came back in the news and actually threatened the two countries that they would need to act accordingly.

Now? What does this all mean? Well, we don't really know it could be a bluff, but if there is one thing the world found out this year, it's that poon doesn't mess around, and sometimes i would say his threats should be taken seriously, especially if we take a look at what happened with Ukraine now guys, if we take a look at the weekly chart for bitcoin, it looks like the rsi, also known as the relative strength index is also the most oversold it's been since march 2020.. Although we've had a lot of strong resistance, meaning it's been hard for bitcoin to break past those top movements and we've had a lot more negative momentum. If you think about what happened last week, the current rsi is actually showing that it is indeed less limited upside over the next few months for bitcoin moving up now on this channel, i tend not to sugarcoat anything. I give you guys the facts just the way it is, and i will say it's been a very tough week for the crypto market, but it wasn't just bitcoin taking a hit.

It wasn't just all coins, it was actually the entire financial, broader market. Now, the time of filming this video bitcoin fell below 30 000 once again, breaking through and erasing all of those weekend gains that it made and ethereum right now too, sitting just at two thousand twenty dollars. If we do go into the top 24 hour winners, we have xec ksm maker and pax gold um anywhere up from 14 to four percent. But we do take a look at the biggest losers.

We still have ust down at 11 cents right now, which is crazy, because a lot of people even thought that the peg for this cryptocurrency would return back to normal at a certain point, especially when they're printing all of this luna. But we will talk more about that soon, aside from that ar ftm axes they're down 14 to 10 for the last 24 hours, and even in the last seven days, even though there is still some relative green in the market, there is much more red with at Least the top 100 all coins listed here now. One of the reasons why you might clicked on this video was actually knowing what is still going on with the cryptocurrency luna. So, let's break down all the updates that have happened since over this weekend.

A lot of people don't know this, but lfg has been accumulating its crypto reserves for a de-pegging scenario. Like we witnessed last week, the funds were ready to be deployed if usd slipped below its one dollar peg and as of may 7th, it actually held 80 394 bitcoin or more than 3 billion dollars during that time, in its reserves. Now, in that selection, it wasn't just bitcoin, but they included other cryptocurrencies like bnb, otherwise known as binance token. They also had some usdt usdc, avax, ust and also luna.

Now i will say this as of today: the organization's remaining reserves include just a mere 313 bitcoin. Coming from that, 80 000 amount and approximately 9.2 million dollars at current prices, so since may 7th, when they had about 3 billion dollars in reserves. The question that comes up is where the heck did, all that money go. How are they left with just nine million dollars out of all that amount and then us to continue seeing luna and ust getting obliterated well at five a.m? This morning the lfg actually finally revealed on twitter what happened with all their funds all right.

So let me go through this just real quick. They stayed in the second line of this thread, consistent with its non-profit mission focus on the health of the terror ecosystem, beginning on may 8th, when the price of ust began to drop substantially below 1, the foundation began. Converting this reserve to ust the foundation did so by directly executing on-chain swaps and transferring bitcoin to a counterparty to enable them to enter trades with a foundation in large size and on short notice. So lfg directly sold 26 million dollars of usdt at 23 million dollars of usdc for an aggregate 50 million dollars.

Now they also went ahead and transferred 52 000 bitcoin to trade, with a counteract party of a net excess of 5 313 bitcoin which aggregated to about 1 billion 515 million. So they sold a ton of bitcoin, 33, 000 bitcoin and on may 12th, lfg swapped. 883 million ust to 221 million luna and stake this across a range of validators to protect against a possible governance attack. Now, after all of that, this is what they're left with 313 bitcoin, 39 000 bmb, still almost 2 million avax 1 billion ust and 222 million luna.

So this tweet right here pretty much sums everything they wasted. Everything achieved nothing and we'll give them jung nation. Let's give them little snaps for uh what they were trying to do now. I will say out of all of this right now.

The suggestions that people are looking towards is going to be a fork so from coinbase they state a fork happens whenever a community makes a change to the blockchains protocol or basic set of rules when this happened, the chain splits producing a second block chain that shares All of its history with the original, but is headed off into a new direction. Just think about it like this. If you ever fight with your sibling, you both are still going to share the same last name, but you guys can decide to go two separate directions. This is pretty much what's going on now.

What do kwan wants to do right now is actually create a fork with luna's blockchain to make it tara classic. This is under a new proposed plan that the current chain would be renamed this, and it would actually ditch the ust stablecoin now, if you guys have heard of the term classic from a fork before this is actually referring or very similarly to what happened with ethereum And then ethereum classics fork before in the past, as well. Now, in dokwan's most recent proposal, he debated that he wants to redistribute tokens and abandon the ust stablecoin and to split the blockchain into a similar manner of what ethereum's fork did the proposal made today entitled terra ecosystems revival. Plan 2 allows blockchain pursuants to keep the current collapsed blockchain, which will henceforth be called terra classic.

Now the new chain will also airdrop 1 billion luna tokens between developers, ust holders and those who held or staked luna or its derivative projects before the price of the stable coin d pegged now. This is important here, but they also state the redistribution will include investing schedules and token lock-ups for most of the luna. This is done so to avoid a steep price decline, as terra determines how to move forward without ust at its center. Now do kwan explained this in an elaborate thread of tweets right here, but to pretty much sum it up.

Here is what greg 166-769-35420 a pretty popular, actually account crypto account within the twitter space. He states it's time to give it up the dryer lint i found in my pocket this morning is now worth more than your coin. Now, since tara luna did hit the bottom, i will say within at least our discord for the jungle community. Even some of our analysts have been making some huge huge returns going back swing trading luna, especially since it hit that near rock bottom.

That many people assumed was the absolute bottom for the asset. It is unbelievable, but right now tara luna, which is sitting at point: zero, zero, zero, two cents point: zero: zero one, nine cents pulling it to the one month. I mean even seeing this now. It looks like the bottom is coming in when we start seeing those four decibels setting into the price.

For this token now it looks like we are getting some proof that luna is getting burned at a significant rate, and this could open up another opportunity for people to be able to make money. Now, since the beginning of all this huge craze, that's been going on, i personally advise not to step into luna just because it was a falling knife and for anyone to have invested near the five cents. The one cent you still would have continued to lose money. Now, even as an example take just how much of a drop this is, the binance ceo said, exchange, never sold it's 15.4 million luna, and now it's just worth 2 461 dollars at its peak finances holdings were worth 1.6 billion dollars of luna.

Now it is worth just a couple thousand bucks. A lot of people assume that your investment of a thousand dollars can't go to zero, but it can definitely go to point zero, zero, zero one cent or something so low, where you don't even find it attractive anymore. Now, if there's anyone who's considering buying into luna or seeing this as another swing trade opportunity, i would just say this - do not consider luna as a viable investment, because, right now you are still gambling right now on the fact that the community is going to come Around dokwan is still going to be able to make those changes, and i just think, even through all of this seeing the way he responded on twitter uh, just seeing a lot of his previous messages that he called people poor, it just doesn't seem like a good Representation of regardless, whatever they do, if they created a fork, they started burning even more luna if this could ever become another viable project. Once again, i will say this, though: the crypto space is so unpredictable, and this is the fun of the crypto realm, but at the same time it is also very dangerous for anyone who tries to gamble upon either side my best strategy through all this is.

I stick through the fundamentals and the projects that i have done. The research for that i know are still going to be around in the next coming years by giving it time not letting my emotions get the best of me and to invest when i am ready. This opens up those major opportunities for me to continue. Making money in the long term run, don't get caught up so much with all the craziness going on.

There's still many developments happening within the markets and if you guys have been seeing a lot of red, everyone has been seeing red, not just from crypto, but even stocks, and even other investment markets even used cars. I'm a huge car guy have always been since i was young and even a lot of the used cars are coming down in price too. Now, if we go along the facts for that, the truth of the matter is bear markets are still going to be. The tremendous most amount of opportunity that you can make within these markets - it really is times like this, where you guys should be more excited about buying into that next cryptocurrency, because this is where that generational wealth will be made.

If we're talking about even the original days of when crypto was first becoming a thing and was on 4chan, it was a pretty lonely community. When you experience these huge huge drops in the market, and then you didn't have anyone to talk to right now because of the further developments of social media, what we've seen within the crypto space, everyone is going through the slumps right now it is not just you. It is not just your neighbor, it's everyone, who's been invested into the market and a large majority of people have been now guys that is going to wrap up today's video, like always, if you guys did enjoy this video, don't forget to drop a like down below Subscribe to the channel, if you haven't done so already - and i want to give a big shout out as well to our sponsor for today - ftx so ftx surprisingly - i mean - i guess this happened for good. They did not include tara luna, so you couldn't actually buy it on their platform, but they do have a lot of other cryptocurrencies listed on their exchange and they have about six million active users.

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If you use code jung, you can also find yourself getting a hundred dollars after depositing a thousand dollars into their app. On top of that, a lot of you guys have been asking me when the next openings for our discord group is going to be, and although right now you cannot join, it is closed. We are sold out. We do have some whitelist applications that you can check out in the link down below of this description during times of market panic.

Our community has been so amazing just because we're surrounded by like-minded individuals, and with this you can get access to my buy and sell alerts. My research, what i'm looking at some of our best technical analysis and traders, as well as an access of other individuals within this community, now guys. Thank you all so much again for watching today's video, the secret code word for today's video is going to be it's going to be moon comment down below moon. I don't know if any of you guys caught the lunar eclipse yesterday, i was trying to find it.

It wasn't as cool as i thought it would be. I didn't really see the moon, but if you guys did see that - and you guys are watching this at the end - don't forget to comment that down below as well. Now, like the usual. Thank you all.

So much again for watching this, video have an amazing day and i'll talk to y'all soon, peace.