Crypto Market Analysis on May 13:
- Terraform Labs’ co-founder and CEO, Do Kwon, proposed a recovery plan on Friday following the collapse of the UST algorithmic stablecoin.
- Bitcoin and most altcoins also fell in April, but GMT recovered from $2.1 support and hit $4.17 at the end of the month.
- Cardano’s price has changed with US equities, especially in the tech sector.
- Dogecoin (DOGE) hit an intraday high of $0.09425, up 23% in the past 24 hours.
Bitcoin (BTC)
While stocks surged and investors digested the effects of the stablecoin Terra UST, bitcoin briefly rebounded above $30,000 on Friday after falling to 2022 lows.
According to Coin Metrics, Bitcoin is currently up 5% at $30,983.40. However, it fell to $25,401.29 on Thursday, its lowest since December 2020. On the other hand, Ethereum is up 6% to trade at $2,067.50.
The price of bitcoin has fallen 15% over the past week, marking its worst week since May 2021.
Ethereum (ETH)
Despite being a distant second to Bitcoin in the crypto world, Ethereum has actually been at the heart of many of the most interesting innovations (such as creating NFTs and smart contracts). As far as market capitalization is concerned, Bitcoin is almost twice as large as Ethereum. Although many casual investors keep a close eye on BTC’s price, they seem to be paying little attention to Ethereum.
However, this year could bring a change. After making long-awaited changes to its technological infrastructure, ETH may eventually become the cryptocurrency to hold in your portfolio after surpassing BTC.
Terra (LUNA)
Terraform Labs’ co-founder and CEO, Do Kwon, proposed a recovery plan on Friday following the collapse of the UST algorithmic stablecoin.
Terra’s blockchain will be rebooted under the proposal contained in the Terra discussion forum message. Kwon writes that Terra community members need to rebuild the chain to support the developer community and ecosystem.
This restart will create 1 billion tokens distributed among various stakeholders in the community. As a result of the relationship between LUNA and UST and the collapse of Terra-based assets, such an approach would be necessary considering the rampant inflation of Luna tokens.
STEP(GMT)
Bitcoin and most altcoins also fell in April, but GMT recovered from $2.1 support and hit $4.17 at the end of the month. Despite this, the bullish power of the token has significantly weakened over the past two weeks.
While the price fell below $1, it recovered quickly as bitcoin bulls also cut prices to test $30,2K resistance.
Crypto assets are long-term bearish but short-term bullish, making market conditions risky. One of these rallies was GMT, but it was unclear how big it would become. Closes above $1.6, however, would indicate that GMT can approach the $2 level.
Cardano (ADA)
Cardano’s price has changed with US equities, especially in the tech sector.
On May 13, ADA and the Nasdaq Composite had a correlation coefficient of 0.93, indicating Cardano will likely move in the same direction as the stock.
In addition, analysts point to the overvaluation of big tech stocks and the likelihood of falling further amid higher interest rates as reasons for a weak Nasdaq recovery.
“Richard Waters, West Coast editor of the Financial Times, says “the axe is hanging over high-growth technology companies.” But, he adds, “This is where valuations have risen the most, and the market is having the most difficulty finding a bottom.”
ADA’s market could suffer a grave decline due to Cardano’s continued positive correlation with the Nasdaq, at least for now.
DOGECOIN (DOGEN)
According to CoinMarketCap, Dogecoin (DOGE), the dog-themed digital asset, hit an intraday high of $0.09425, up 23% in the past 24 hours. Over the past seven days, the doggy cryptocurrency has lost over 25% during the crypto crash, but this spike is a welcome change.
Today’s DOGE price action appears to have been entirely unaffected by Elon Musk’s announcement about his intention to complete his Tesla purchase, tweeted to his 92 million followers this morning.
