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As per data from CoinGecko, Terra (LUNA) reached a high of US$0.00058798, indicating a debris-to-hubris kind of situation. The cryptocurrency rebounded after Do Kwon, founder of Terraform Labs, released a recovery plan for TerraUSD and Terra Luna amid the crash on the Terra Blogspot. Do Kwon admitted in the blog post that the network's decentralized stablecoin, TerraUSD, had lost the community's faith. The founder went on to say that Terra's growth had previously been linked to TerraUSD, but with the crypto crash, the community should now focus on how the overall ecosystem can continue to thrive. Kwon further clarified that Terra's community must rebuild the chain, and validators must reset the network to 1 billion tokens. There is no lie that LUNA gains at a faster pace than bitcoin. Does this mean it is the end of BTC's golden times? Let's find out.
Kwon stressed the fact that the Terra network needs to incentivize its security with a realistic inflation rate of 7 percent, since fees will no longer be enough to pay for security without trading fees. Moreover, TerraUSD stablecoin holders, according to the founder, should own a major portion of the network because they are the network's debt holders and should be fairly compensated.
Apart from that, he noted that the Terra network requires its token holders from before the crash to stick around to add value to the ecosystem. Interestingly, the recent boom in the value of the cryptocurrency is insignificant compared to the tremendous loss that preceded it. The token went from an all-time high of US$118 in April to dwindling to zero in the past few days.
Currently, as per data from CoinMarketCap, the token is trading at US$0.0001775, 24.86 percent down in the last 24 hours.
Currently, Bitcoin and Ethereum, the biggest cryptocurrencies in the market, are struggling to rebound from their bearish price trends. Though LUNA faced the biggest crash in the history of the crypto world, the thing is LUNA is making a comeback whereas major cryptocurrencies like Bitcoin and Ethereum are still struggling. Financial experts believe that the crypto market is following the trends of the stock market, which also experienced a technology-led sell-off earlier this week amid big tech's earning results. At the time of writing this article, Bitcoin is valued at US$30,352.42, according to coinmarketcap. Around April 4 and 5, Bitcoin breached the US$45,000 resistance and headed towards US$48,000. Key indicators indicated that Bitcoin will soar further, and had predicted that the month of April might be kinder to BTC. But instead, the crypto fell further making investors quite anxious about its future prospects.
Well, it is quite evident that Bitcoin does need more support from its developers and investors. Experts believe that if Bitcoin does not regain its lost market value, Ethereum might soon overtake BTC to become the largest cryptocurrency in the market. Ether's 'Merge' upgrade launch was delayed to Q3 of 2022. But the competition will be tough after this launch and Bitcoin needs to brace itself for it. Because if it doesn't, it will be extremely difficult for BTC to remain the top cryptocurrency in the world.
History should never be used as a flat-out indicator for future price movements. Even though the Golden Cross has historically produced spikes in the mid and long term, it's also essential to keep an eye out for fakeouts. As Cryptopotato reported, back in 2015, Bitcoin charted two Golden Cross patterns. The first one, however, appeared to be a fakeout, and the 50MA temporarily crossed back below the 200MA. Even though it continued with the back-up, taking up short-term long positions might be riskier, despite the bullish crossover.
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