Written on the rise of $BTC
I am deeply influenced by an old bullish army for Bitcoin, digital currency, and digital assets. Since I came into contact with this brother, even the term virtual currency is no longer used. Long-term bullish, short-term unpredictable, this is also my basic idea at present.
The interest rate cut is undoubtedly a major event that affects the currency circle, and the interest rate cut will eventually come cyclically. The growth of digital assets is something that makes us excited. But always remember that it is easy to gain and easy to lose.
Here again, I will post a well-known story to wake us up at all times.
The rise and collapse of $LUNA
In 2021, LUNA coin once became a star in the cryptocurrency market. LUNA belongs to the Terra ecosystem, and relying on the demand for algorithmic stablecoin UST, the price of LUNA has soared. In just a few months, LUNA has risen from a few dollars to hundreds of dollars, and some early investors have gained a hundred times the profit. Many investors believe that LUNA and UST are the "future of the currency circle" and have bought them.
However, in May 2022, disaster struck. As an algorithmic stablecoin, UST relies on the price of LUNA to maintain its value of $1. However, a series of sell-offs caused UST to depeg (no longer equal to $1), panic spread, and investors sold LUNA and UST in large quantities. LUNA's algorithmic mechanism tried to save the market by issuing a large number of new coins, but it accelerated LUNA's inflation and the price collapsed rapidly. In just a few days, LUNA fell from more than $100 to less than 1 cent, and its market value evaporated by tens of billions of dollars. Many investors suffered heavy losses in this crash, and some even lost their entire fortunes overnight.
For investors, understanding the risks, staying calm, and having a long-term investment vision are the keys to surviving and profiting in this turbulent market. $BTC $ARKM