Market Update: Bitcoin Idles, Bored Ape Slumps

18th March 2022
Market Update: Bitcoin Idles, Bored Ape Slumps
Image Credit: Whoever owns Bored Ape Yacht Club #8817

Bitcoin and other cryptocurrencies climbed slightly on Wednesday before paring gains, after the Federal Reserve announced that it will raise interest rates by 0.25%.

“In this scenario, we are not sure if the FOMO-buying in crypto will be enough to break out of its correlation with equities. A convincing break to end the crypto downtrend would probably need to see BTC close above 46,000 and ETH above 3,400”, QCP Capital said in a note on Wednesday, ahead of the announcement.

BTC 24-Hour Chart. Data: CoinMarketCap

At the time of writing, Bitcoin (BTC) is trading at US$40,541.46 (-1.38%) while Ethereum (ETH) is trading at US$2,783.22 (+0.49%). Altcoins such as Avalanche (AVAX) and Solana (SOL) were up over 8% and 5% at one point over the past 24 hours.

Sensei’s challenge

While Terra (LUNA) hit an ATH of US$103.88 earlier this month, it has fallen by more than 10% over the past week. On Monday, high-profile degen crypto investor Sensei Algod challenged the CEO of Terraform Labs, Do Kwon, to a US$1 million bet.

“Who wants to take a US$1,000,000 bet that LUNA will be lower price in 1 year from now?” he tweeted on Sunday. “Cool, I’m in”, replied Do Kwon, betting US$1 million that the price of Terra’s LUNA token will be higher than US$88 on March 14 next year.

Last month, Sensei Algod labelled LUNA as a “glorified $TITAN ponzi”.

UST’s peg is maintained by allowing 1 UST to be exchanged for US$1 worth of LUNA at any time. When UST falls below US$1, traders can purchase it on the open market and then swap it for US$1 worth of LUNA, therefore maintaining UST’s peg.

“The further [UST] grows, the more pressure there is on Luna,” said Sensei Algod. “What Lunatics are expecting is that demand will infinitely keep exceeding supply, the moment supply exceeds demand people will panic and start mass redeeming UST for LUNA”.

Bored Apes swing and crash

Meanwhile, Apecoin, the Ethereum-based token released by the Bored Ape Yacht Club (BAYC) NFT collection, peaked at US$39.40 five minutes into its first day of trading before falling as much as 80%. At the time of writing, Apecoin is trading at US$11.21 (-44.67%).

The floor price of BAYC NFTs also briefly fell to 79 ETH, down from 100 ETH, before rebounding to 85.5 ETH.

BAYC NFT holders were airdopped 10,000 Apecoins apiece (15% of the total supply) yesterday as part of the broader “ApeDAO” campaign. Of the remaining supply, 47% will be sent to the ApeDAO treasury, 16% to parent company Yuga Labs, 8% to the BAYC founders and 14% to launch contributors.

Holders of Apecoin will have governance rights over the DAO and its decision making.

It’s official – Ukraine legalises crypto

Ukraine has passed a law that legalises cryptocurrencies in the country.

The bill, which was adopted by Ukraine’s parliament last month and signed into law by President Volodymyr Zelenskyy on Wednesday, will allow foreign and Ukrainian cryptocurrencies exchanges to operate legally, according to the country’s Ministry of Digital Transformation.

Crypto donations to Ukraine have already surpassed US$60 million.

Written by Bread News Team
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