Bitcoin Back Below $30K Level, Ethereum, Dogecoin In Red: Why Analyst Thinks Apex Coin Is In A 'Fight For Its Life'

Zinger Key Points
  • Bitcoin, Ethereum, Dogecoin traded in the red, tracking other risk-on assets
  • Retail and institutional investors still have "massive wounds" from recent collapse - OANDA's Edward Moya.
  • Terra (LUNA) co-creator Do Kwon proposes a hard fork

Bitcoin traded below the $30,000 mark, while Ethereum and Dogecoin were also weaker over the last 24 hours at press time on Monday evening, as the global cryptocurrency market cap declined 4.4% to $1.3 trillion.

Price Performance Of Major Coins
Coin 24-hour 7-day Price
Bitcoin BTC/USD -4.1% -0.9% $29,898.70
Ethereum ETH/USD -5.1% -8.7% $2,027.14
Dogecoin DOGE/USD -4.45% -14.3% $0.09
Top 24-Hour Gainers (Data via CoinMarketCap)
Cryptocurrency 24-Hour % Change (+/-) Price
eCash (AR) +10.3% $0.000047
PAX Gold (PAXG) +0.9% $1,826.98
TrueUSD (TUSD) +0.05% ​​$1

See Also: Best USDC Interest Rates

Why It Matters: Cryptocurrencies continue to mirror stocks closely. At press time, the S&P 500 and Nasdaq futures were relatively flat after stocks ended Monday in the red.

The dollar index was 0.08% lower at $104.1 at press time. The measure of the greenback’s strength against six of its peers has slipped from the $105 levels touched on Friday.

On the current state of the dollar index, cryptocurrency trader Michaël van de Poppe said the “highs have been swept for liquidity.”

The analyst tweeted that if the index lost 103.7 points, more downwards pressure could be seen and lead to risk-on assets getting a boost. 

OANDA senior market analyst Edward Moya said that the retail and institutional world “still have massive wounds” from the recent collapse of Bitcoin prices.

“Confidence is weak in the cryptoverse and until stablecoin concerns ease, Bitcoin is in the fight for its life,” said Moya, in a note, seen by Benzinga.

Terra (LUNA) co-creator Do Kwon on Twitter proposed forking the Terra chain into a new chain without algorithmic stablecoins called Terra, with the ticker LUNA, and Terra Classic with the ticker LUNC. 

If Kwon’s proposal passes, the fork will be coordinated with the validators on May 27.

Terra USD (UST), an algorithmic stablecoin backed by LUNA, lost its peg to the dollar last week, precipitating the crash in cryptocurrencies. Since then, LUNA has collapsed in value entirely after witnessing massive hyperinflation.

Delphi Digital said that Bitcoin’s latest movement below the $30,000 mark puts its price nearly 60% off its all-time high. However, a big drawdown doesn’t mean “immediate reversal” is imminent. 

BTC-USD Returns After Previous > 55% Drawdowns From ATHs — Courtesy Delphi Digital

“Looking back at historical instances where BTC’s price dropped more than 55% after putting in a new ATH, its average price performance over the following six months was relatively muted at best,” said the independent research firm in a note. 

Read Next: Vitalik Buterin Calls For Bank Deposit Insurance-Like Protection For Small Crypto Investors

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