BTC Falls Below 30k Psychological Support; Do Kwon Pushes for a Terra Hard Fork

Chart of the Day





On Thursday, the broader crypto market tanked alongside U.S. stocks, the latter of which suffered their steepest rout in two years as investors are now starting to weigh the prospects of a hawkish monetary policy on economic growth. As of the time of writing, BTC is trading below the $30,000 psychological support after shedding 3% of its market value in the last 24 hours. The immediate resistance level for BTC currently sits near the $29,500 level. A clear move above said level could temporarily reverse the bearish trajectory. However, a failure to rise above the $29,500 resistance level could potentially kickstart another round of decline for the number one cryptocurrency by market cap. 

In a similar vein, ETH has failed to defend the $2,000 handle after plunging by 4% in a mere matter of hours. Most major altcoins are also deep in the red, with AVAX leading the plunge on a double-digit percentage loss from 24 hours ago. Not all is doom and gloom in the crypto market though, as said market has just experienced a record-breaking level of capital inflows last week, with nearly $300 million pouring into BTC alone. This indicates that despite the recent market turmoil, investors are still turning to BTC for relative stability within the crypto space. 





Talk of the Town





The founder of Terraform Labs, Do Kwon, has put forth a hard fork proposal for the Terra blockchain, one that has received mixed responses from the Terra community. The proposed hard fork will herald in a new chapter for Terra, a split-off from the original chain, while the "old" chain will henceforth be referred to as Terra Classic. According to Kwon's proposal, the new fork will have LUNA as its native currency, but will omit the presence of UST. As of the time of writing, 89% of those with staked LUNA have voted in favor of the proposal. However, the broader crypto community seems to prefer a burn mechanism over a hard fork.