It's official bitcoin's price has officially dropped down below the 30 000 mark, a price level that many investors thought we would never see again. Yesterday's continued sell-off in crypto came alongside major pressure on stocks and particularly within the tech sector. With all that said, most people would say that it can't get any worse than this, but in this case most people would be wrong. The third most valuable, stable coin by market cap, tara, usd lost its one dollar peg, as it plummeted 21.

Currently, at the time of filming this video tara is back at about 91 cents. At the time of filming this video and it's sister token luna, is down about 45 within the last 24 hours, as the crypto bloodbath continues. So in today's market update we'll talk about the future of ust stablecoin and discuss what will happen if it can't regain that one dollar peg. On top of that, we'll also be going over some major headlines in the market today and talk about what some crypto experts are also saying about: bitcoin's price action and future predictions on this crypto market.

Now, if you are liking these daily videos and market updates, don't forget to drop a like down below 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. So the global crypto market for today sitting at 1.43 trillion dollars now, what's really interesting about all. This is that i pulled the charts out to the last one year and you'll notice that the global crypto market cap has gone down even more than this previously before. In the past last july, when the crypto market started to tank, we even saw the global crypto market cap going down as far as 1.2 trillion dollars.

I think the biggest area of concern, if we take a look at the broader crypto markets, is if we ever saw crypto sliding near the 1 trillion or even under that, currently there's still enough money left in the reserve, but it still leaves the question. Could this go down even more just because we have seen it go down further before in the past now, bitcoin right now is sitting at 31, 000 or still down about 4.83 in the last day, with a downward return of about 19. In the last seven days, we're seeing a similar reflection happening within a lot of the other top assets, including ethereum, which is currently down about one point: eight seven percent sitting at twenty three hundred forty eight dollars today, or also down about seventeen percent as well. Now, yesterday, for a very brief moment, bitcoin did fall below and break that support level of thirty thousand dollars, hitting twenty nine thousand nine hundred sixty one dollars for just a small period of time, as both traditional finance markets and cryptocurrencies began to have that sell-off caused By the us federal reserve's, aggressive monetary tightening, as well as fears of a recession now currently bitcoin, is still sitting about 55 lower than its all-time high of 69 000 set last november.

This latest decline left bitcoin at a 10-month, low and its lowest price. This year now, the last time bitcoin's market cap fell below the 30 000 threshold was back on july 20th of 2021.. Shortly after this, if you guys do remember what happened was actually we saw a pretty strong rally to the upside and we do get any events of history repeating itself. Hopefully, we can see something similar to what happened after that july rally now, after that, we did have a bit of a correction in the market once again, but that is when bitcoin did break its all-time high.

Now i know when we have max fear in the market, and people are just freaking out and throwing throwing their hands up in the air pull the charts out. We don't even have to look at the all-time high yeah. The all-time charts still look amazing because bitcoin, it is still a relatively new risk on asset class. But if we look at the last one year, bitcoin, when it did pump below it did get suffered, it did have some hurt in the market.

We did see it going back up in price now, while the markets have been having a lot of suffering. We haven't seen bitcoin going back into mainstream media news and we've been getting a lot of experts pitching in on their own perspective as well. Edward moya, the senior market analysis at awanda said the recent crypto slide is strictly based on the tech share, led sell-off and not fundamentals for the crypto verse. Bearish momentum could take bitcoin towards the 28 500 level, but that might start to be where some long-term bets come into play.

The long-term fundamentals pay attention here remain in place for bitcoin, but a return to record highs will take a long time. Bitcoin will start to stabilize when the bloodbath on wall street ends and right now many investors are still in panic selling mode. Now i know a lot of investors who are still relatively new to the crypto markets are wondering brian well. If things are looking bad in the stock markets wall street bets, is you know not having a good time as well? Why is crypto still getting affected? Why does crypto, which is known to be a hedge against inflation or an asset that is still an alternative to other businesses or even the traditional stock market? How come crypto goes down.

Crypto is still considered as a risk on asset, meaning whenever we get words about a looming recession and the fact that interest and the fact that interest rates need to continue going up. This is when a lot of the larger institutions look towards safer, more conservative assets. Crypto is still considered a risk on asset, even though the thesis and the ideology behind crypto is literally for the purpose of this, for the purpose of fighting recess for the purpose of also moving money away from centralized entities like the us government, you know i could Also be asking the entire global economy and asking all the whales too like why you guys are making the opposite move that we should be making, but sometimes these questions just don't have the right answer, and this is the way it is we're. Seeing a lot of the money getting shifted into the bonds market and a lot of those safer alternative assets, while crypto has been going down in addition to the stock market as well.

We also got word from stephen mcclurk from valkyrie chief investment officer, who also stated if the fed continues to raise rates through june and july will probably continue to get markets going down all the way through the summer. And he states, on the more bearish expectation that, due to midterm elections coming up in november, we'll probably see the fed pausing or even lowering rates starting at the september meeting. So that might be a catalyst for the market to go back up at that point. So currently, the crypto markets are in extreme fear and we pull up the crypto fear and greed index we're sitting at a 10 at the time of filming this video and bitcoin holders even continue to sell, avoiding further loss.

So, in addition to that exchange inflow, volumes currently are sitting at 53 764 bitcoin, which are currently outweighing the exchange outflow volumes at 48 596., with these numbers to confirm is pretty much that bitcoin is flowing out of wallets and going on to exchanges where this is. When investors then begin to sell it off for usd now, bitcoins outflows seem to be pointing towards the likelihood of more downside. However, reversals often come when fud is at an all-time high, so it goes to say that it is impossible to know for certain. What's gon na happen next, there's also a popular saying within the investment markets along the lines of once the last bull turns bearish.

That is actually when the market reverses now an interesting chart to take a look at is highlighting a possible zone for capitulation for bitcoin. Here it's quoted, this eight-year parallel channel has four perfect touches: will there be another capitulation spike low within the yellow circle between red and blue, aligning with the prior all-time high based on the chart, provided the price of bitcoin could drop as low as 19 891 dollars? If a more bare scenario played out also real quick, if you don't know what a market capitulation is by definition, capitulation, capuchi caputulation means to surrender or give up little tongue twister right there in financial circles, this term is used to indicate the point in time when Investors have decided to give up on trying to recapture lost gains as a result of falling stock prices or in this case, crypto prices. The example investopedia gives is this suppose, a stock you own has dropped by 10. There are two options that can be taken.

You can wait out and hope the stock begins to appreciate, or you can realize the loss by selling the stock. If the majority of investors decide to wait it out, then stock prices will likely remain relatively stable. However, if majority of investors decide to capitulate and give up on the stock, then there will be a sharp decline in its price when this occurrence is significant across the entire market. It's known as market capitulation.

Now, on top of that, we do have some additional crypto related equities, taking a huge hit with the crypto crash. Microstrategy stock fell 25 on top of coinbase's stock, also dropping 20 setting the tone for crypto related equities as bitcoin continued to crumble down low about 30 000. Yesterday afternoon now going into what i want to talk about in this video. One of the main focuses and highlights of what occurred last night.

This is going to be tara. Ust that went in free fall, dropping about 200 basis points against the dollar peg. Now ust's peg went as low as 68 cents yesterday evening, and even today, it's still sitting at about 90 cents. Today, now tara, luna and terra ust are two native tokens of the terra network, which is a blockchain based out of terra labs from south korea.

Just a quick background: luna still plays a vital role in maintaining the price of the terra, stable coins and it reduces the market volatility, so they remain stable. Now, although tara luna is sitting at 28 today, they did have an all-time high of 116. At the peak of the market, now the stable coin that it works along with is an algorithmic sable coin, which works together with luna to maintain a price of one dollars, using a set of on-chain mint and burn mechanisms, pretty much the easiest way to explain. This is if we take a look at usdc or usd tether, they rely on a reserve to maintain that one-to-one peg, but tara uses a smart contract-based algorithm to keep the price of tara ust anchored to one dollar by burning permanently, which is destroying luna tokens.

In order to mint new ust tokens now, in theory, these mechanisms, ensure traders can always swap one dollar worth of ust for one dollar worth of luna, which has a floating price, but, as ust has fallen off its one dollar level, the price of luna has dropped Over 30 in 24 hours now, the reason why luna is down below 30 right now is because, when ust lost that one to one peg, this led many investors to trade luna for the discounted ust, thereby generating a profit and pushing the price of luna further and Further down below now, luna's significant decline, put its market cap below that of ust and potentially throws off the entire foundation of ust's entire mechanism. Now, on top of that, anchor protocol, which is used by the terra ecosystem, has had a huge default or reduce in the amount of deposits going through. We actually saw within the last two days more than 30 of deposits getting withdrawn. Now the luna foundation guard also known as the lfg has quickly taken action in an effort to protect that ust peg over on twitter.

They stated just a few days back over the past several days. Market volatility across crypto assets has been significant. The market turmoil is also reflected by the past weeks on certain macro conditions across legacy asset classes pretty much the tldr is this. As a result, the lfg council has voted to execute the following: take a loan of 750 million dollars worth of bitcoin to otc trading firms to help protect the usc peg and also loan 750 million dollars in ust to accumulate bitcoin as market conditions normalize.

They state the traders will trade the capital on both sides of the market to help accomplish both number one and number two eventually maintaining parity of the lfg reserve pool denominated in bitcoin as market conditions progressively stabilize now. Tara luna is unable to normalize that one-to-one peg for their stable coin. I could definitely see their own cryptocurrency even hitting the support levels of 20. Worst case scenario is tara, luna even goes to the 10 range, and at that point this would just be terrible news for the entire crypto markets, if you're anyone who is holding tara, luna or even one of their stable coins just imagine being unable to escape the Volatility within a certain asset where a stable coin: one day you wake up, is completely down, and then, on top of that, you won't even be able to transfer it out to any type of luna within the market.

Now the federal reserve also issued a new report. Yesterday as well, highlighting the risk of market runs on stable coins. In a may, ninth report on financial stability, the fed emphasized stable coins alongside certain money, market funds and bonds as areas of risk in the current financial system, specifically funding, they quote funding risks as domestic banks are low, but structural vulnerabilities persist at some market funds. Bond funds and stable coins now, if we weren't gon na ever get some type of stable coin regulation before in the past.

Now, with this occurrence happening, i think this is probably one of the most historical moments in time. I can definitely imagine the federal government or the sec some regulators stepping in now now the fact that terra luna has gone down and many people are getting hurt by this. I do expect us to see some type of regulation in the near future. Now i know there's a lot of bad news so far the markets haven't been looking good, but let's actually talk about some more fundamental developing news that ain't so terrible.

First of all, meta's instagram to support nfts from ethereum polygon solana now are starting to happen. The ceo of facebook, also known as metanow mark zuckerberg, said in a video on instagram that they'll begin testing. Nft integrations this week, so instagram also intends to support widely used. Crypto wallets such as metamask.

This is gon na happen by plugging in their wallets and users. Are then gon na be able to prove their nft ownership and showcase on their profiles and tag? The creators who made them now in a twitter thread posted by a meta representative, the company, said the compatible third party wallets, will be metamask rainbow and even trust wallet instagram will initially support, ethereum based nfts and then seeing how that goes. They'll then add in polygon solana and flow to be added in on later dates. Now instagram plans to not charge its users for posting and sharing nfts as twitter.

Initially did so. I went ahead and did this twitter required you to pay their monthly payment, which is called twitter blue? This is where you couldn't even link your nft on the computer. You actually had to do this on your phone. It still didn't work the best and it looks like mark zuckerberg - is trying to one-up that now the question is: will this have a positive impact within the nft market? I know even with coinbase's nft marketplace listing that did absolutely nothing within the industry, and i just queen basis stock has been going down.

Their nft marketplace hasn't been doing too. Well, i don't know many people who continue to use the platform. I think a lot of people are looking for alternative assets, but i do think there's always a possibility of a comeback, and i don't want to say that you know they're completely doom and gloom. I just think it's tough for a lot of these exchanges during this time to really just pull anything off now.

Another headline i wanted to discuss real quick was the fact that el salvador went ahead and bought another 500 bitcoin amid the market pullbacks. This actually gives us a little bit good news just because, while everyone's freaking out just talking about a bitcoin's gon na go to a thousand dollars or just something ridiculous, we have other countries like el salvador going ahead and adding another 15.5 million dollars worth of bitcoin To its balance sheet in a tweet on monday, naib buculi also stated el salvador just bought the dip 500 coins at an average usd price of 30 744. He then later stated i could sell the coins right now and make almost a million dollars in just 11 hours, but of course not with the cute uh love smiling emoji cool to see that he also uses emojis. I like that now, president buckley has a proven track record of dip buying bitcoin during flash crashes and he's also playing the long game.

Despite the criticism from many organizations such as the imf and the world bank. In the long term, el salvador plans to construct a bitcoin city near a volcano that will be funded just by bitcoin. The city will also have residential and commercial areas, services, entertainment, restaurants and an airport which are all going to be built by the volcano. Now, if you didn't hear about this, it's pretty cool developments.

I don't know how safe it's going to be. I don't know how safe anything is near a volcano now. The construction for this is going to begin at some point in 2022, which is currently the year in we're at now. Additionally, on top of that, they plan to raise about a billion dollars via a bitcoin bond, in partnership with block stream, which is a digital asset infrastructure company.

So apart from el salvador, there are also some massive bitcoin whales that have been accumulating through the previous downturns. In sideways price, action will, while it's holding a ten thousand to even a hundred thousand bitcoin, have been on a buying spree since april thirtieth. Taking a look at this graph here, this green line is going to be the price action of bitcoin, and then the pink is going to be that 10 000 to 100 000 bitcoin holders. This data here is really good news and it's very encouraging because it suggests that successful investors that know what the price of bitcoin is doing, even when it's going down, is still doubling down on their bets and showing that bitcoin can be overvalued and they're putting their Money where their mouth is so to wrap this video up, don't forget to check out the sponsor for today's video listed down below in the description fdx.

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