First Mover Americas: Hashed Takes $3.5B Hit on LUNA as Bitcoin Trades Under $30K

The latest moves in crypto markets in context for May 19, 2022.

Good morning, and welcome to First Mover. I’m Brad Keoun, here to take you through the latest in crypto markets, news and insights. (Lyllah Ledesma is off this week.)

  • Price Point: Bitcoin steadied just below $30,000, though Solana’s SOL and Cardano’s ADA were nursing bigger losses.
  • Market Moves: Traditional markets are looking weak, and that’s not a good sign for cryptocurrencies, given the strengthening correlations between U.S. stocks and bitcoin – effectively the bellwether for digital-asset markets, Shaurya Malwa reports.
  • Feature: A crypto wallet linked to the South Korean venture fund Hashed appears to have lost some $3.5 billion in value amid last week’s collapse in prices for the Terra blockchain’s LUNA tokens, Sam Reynolds reports.

Price Point

Bitcoin (BTC) was holding steady after a 5.7% drop on Wednesday that took the price back below $30,000 – increasingly a crucial level in the struggle to avoid a deeper sell-off.

The largest cryptocurrency was up 1.4% in the past 24 hours to about $29,427 as of press time. Ether (ETH), the second-biggest, lost 3.6% to $1,956. Solana’s SOL and Cardano’s ADA were nursing bigger losses.

But the mood in traditional markets remains grim, with U.S. stock futures trading lower on growing concerns that higher interest rates and fast-rising inflation will seriously dent the economy. The Wall Street Journal Editorial Board warned of a possible looming crisis in emerging markets, as analysts and economists begin to assess the possibility of mounting debt-payment issues in the face of higher borrowing costs.

Market Moves

By Shaurya Malwa

Waning sentiment around strong economic growth caused the second day of sell-offs in broader markets on Thursday morning.

Asian markets slide following a day of red in U.S. equities, leading to sell-offs in bitcoin and other major cryptocurrencies.

The weakness in global markets rose amid fears of lower spending in the coming years as the West ramps up interest rates and tightens monetary policies.

Price movements in cryptocurrencies have lately tracked U.S. traditional markets, with bitcoin trading similar to a risky technology stock. And as fears grow over the precarious state of traditional markets, bitcoin continues to come under pressure.

Inflation is forcing consumers to spend more on food and less on discretionary items, as reported, with Walmart (WMT) cutting profit forecasts on Wednesday, citing higher fuel and worker costs.

U.S. Federal Reserve Chair Jerome Powell has pledged to keep tightening monetary conditions until inflation comes down, with some crypto analysts expecting a further correction in cryptocurrencies should current market conditions continue.

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