LUNA Leads The Slide As Major Coins Are Crashing Today: Analysis

LUNA leads the slide with the major coins crashing today and the markets slid on Monday after a weak trading session on the Asian and EU markets so let’s have a closer look at today’s latest altcoin news.

The crypto markets dropped 2.6% in the past day amid the renewed fears over the global recession. The stocks in the EU and Asia got lower while the reports of the glboal supply chain disruptions gripped the markets and China extended its lockdown period to another week. Hong Kong’s Hang Seng Index ended the day 3% lower and the Shanghai Composite took a loss of 2.61%. Germany’s DAX sid by 0.31% and the pan-European index Stoxx 600 lost 0.20%. the traders were looking for a bearish movement in the US markets after NASDAQ dropped 0.67% and the S&P500 dropped 0.31%.

The bearish sentiment in the global markets spread to the crypto markets as well. Terra’s LUNA leads the slide and AVAX and ETH follow. In the EU mornign hours, ether dropped to a little over $3000 and now the asset could see a drop to the $2700 mark. LUNA dropped 8% as the Foundation Guard added $173 million in BTC to the wallet over the weekend but it brought the total holdings to 40,000 BTC. The LFG is a newly formed NFO that aims to maintain the Terra ecosystem by building a $10 billion reserve in BTC for backing UST which is also issued by Terra as one of the main backers.

LUNA dropped to a support level at $85 nearly a week after setting a lifetime high of $120 price-charts show with it losing current levels could see a drop further down to the $70 mark where the next major support exists. Crypto market capitalization fell to over $2 trillion dropped some $260 billion since the last week’s $2.27 trillion figure and BTC dropped to $41,300 in EU morning hours a 10% decline since a week ago at the $48,100 mark which is a three month high.

Some analysts said that the recent price action proved the market’s correlation with the stocks was rising. Alex Kuptisikevich who is an analyst at FxPro said:

“The crypto market is again increasing its correlation with the dynamics of stocks, or rather, it is guided by the high-tech Nasdaq index. This relationship is easily explained by the fact that in both cases, investors are betting on a progressive idea.”

The metrics from earlier this month showed that BTC ended the first quarter of 2022 and traded at a correlation of 0.9 with S&P where 1 suggests a perfect correlation and -1 is perfectly inverted and the 90-day correlation between BTC and S&P set a 17-month high in March.