Melker considers it easy to seem like a “genius” in a bull market. In a bear market, even a good entry can cause losses.

The bear market is not only a moment to follow the number of losses that both investors and traders could endure. A bear market could also get labeled as a time when everyone has a moronic behavior. Instead, according to analyst Scott Melker, The Wolf of all Streets could get considered such with an ironic tone.

In his most recent newsletter based on the bitcoin market, Melker recalled his appreciation from a few months ago when he mocked that everyone is a genius in bull markets. Melker says this happens because the analyst alleges that it is straightforward to make money and appears to be making the right investment decisions when all the currencies are rising non-stop.

When Melker commented on everyone being “geniuses,” the market was in full swing and euphoric. By then, “even the most worthless coins” were going to the moon, so any investment seemed bright.

But now, when the whole market is red, the situation is very different. “Even a smart decision becomes a (temporary) loss in a bear market,” Melker wrote.

Not Everyone Behaves like a Dumb during a Bear Market

After analyzing how moments (returns and losses, as the case may be) can create the illusion that a trader or investor is good or bad at what they do, Melker concluded that the best strategy for most is to hold their active (hold) and wait.

The same analyst had recently commented on this line, as we reviewed in CriptoNoticias. He did so about the positions of Michael Saylor with MicroStrategy, Elon Musk with Tesla, and Jack Dorsey at Block (formerly Square).

For Melker, these entrepreneurs have made a mistake in their entry prices to invest in bitcoin. However, even their faithful critics would consider them in the long run. In that statement, he not only outlined a little bit of this logic that bull markets or bear markets kind of blur what investors do.

Also, there was a bullish prediction for BTC in the long term. In his comment, he echoed what the vast majority expect from cryptocurrency in the years to come: a significant bull rally.

Some users expect BTC to touch $100,000 soon. Others go further and believe that it will feel the million dollars in future cycles. Meanwhile, in the short term, Melker maintains that “everyone is a genius in a bull market and everyone is an idiot in a bear market.”

As long as demand reaches new peaks and purchasers are willing to pay more for the digital asset, any number could be accurate. For this reason, many specialists agreed that bitcoin would approach at least USD 100,000 by 2022, especially after it reached its last all-time high peak the previous year.

Another one who thinks that bitcoin will approach USD 100,000 is Mike McGlone, the chief strategist at Bloomberg Intelligence. From New York, the accountant Kate Waltman also shared the same thought with Time magazine.

By: Jenson Nuñez

Over 1.8 billion people live in countries whose levels of inflation range between 10% and 99%. The US is about to join the list that includes Central and South America, Asia, Africa, and Europe.

Inflation does not seem to stop growing throughout the world, which causes concern among people. Prices are experiencing record increases in countries with historically fragile economies and those known for having stability and economic growth.

Specialist Sam Wouters from TradingEconomics determined that 23% of the world’s population suffers from double-digit year-on-year inflation. That affects over 1.8 billion people in 52 countries in Central and South America, Europe, Africa, and Asia.

The Central and South American countries on that list are Argentina (55.1%), Chile (10,5%), Paraguay (11.8%), Brazil (11.3%), Suriname (61.5%), Haiti (23.9%), Jamaica (11%), and Cuba (23.3%). Venezuela is the only nation surpassing that mark in the region, with a three-digit inflation rate (284%).

That is happening while 43% of the world suffers from inflation of between 5% and 10%. That situation draws attention in countries like the US and Spain, which have not reported those figures in over 30 years.

The inflation rates in those two countries are increasingly close to double digits. They currently have inflation rates between 8.5% and 9.8%, similarly to other nations known for their strong economies.

Some Specialists Consider Bitcoin a Hedge against Inflation

The above figures represent all-time records, but some experts believe inflation is even higher than the official data indicates. Given that context, cryptocurrency content creator TechConCatalina stated that Bitcoin (BTC) emerges as a store of value.

The increase in banknote printing has contributed to inflation, leading various economic specialists to recommend Bitcoin. The cryptocurrency has limited issuance, which nobody can change without breaking the protocol and consensus of the network.

Cryptocurrency education specialist Sam Wouters said that the dominance of Bitcoin is not about its high market capitalization. He believes that it occurs when it discourages central banks from printing money.

Kristalina Georgieva, the head of the International Monetary Fund (IMF), commented that too much money was in circulation. She noted that they did not foresee that this situation would bring economic problems, and she believes there will be further inflation.

Bitcoin specialist David Battaglia stated that high inflation is nothing but the cover-up of a government default. He considers that the economy went bankrupt when the whole world entered a phase of high inflation.

He added that historical precedent teaches that governments pay off their debts by printing more money. The US can pay its bills with inflation while the other countries fail to pay their external debt.

Battaglia recommends surviving the transition from one model to another by having assets not dependent on an issuer. For that reason, he believes that people should turn to those hard to produce and highly desirable, like Bitcoin.

The above situation happens while the price of Bitcoin is suffering a sharp drop that has brought it to around USD 30,000. Some predictions indicate that it could go even lower, which raises concern among investors. However, enthusiasts remain convinced that the cryptocurrency will remain bullish in the long term.

By Alexander Salazar

The value of UST fell to USD 0.987 before recovering within one day, but critics consider it is risky to the cryptocurrency market. The price of LUNA plummeted by around 10% between April 7th and 9th due to fear of parity loss by UST.

On May 7^th, the TerraUSD (UST) stablecoin briefly lost parity with the USD dollar while the price of LUNA dropped by 10%. There began to arise questions about whether Terra would face the first tests of its reserves in Bitcoin soon.

The price of TerraUSD (UST) briefly fell to USD 0.987 before recovering the following day. That was the first time the stablecoin had lost its peg since it embarked on building Bitcoin and Avalanche reserves.

Some critics consider that the stablecoin UST put the cryptocurrency market at risk. By the way, data from CoinMarketCap indicate that UST and LUNA occupy 9^th and 10^th places in the cryptocurrency ranking.

LUNA is trading at around USD 46.85 and has accumulated a 30.2% loss over the last 24 hours. Its trading volume is above USD 4.97 billion, and its market capitalization is about USD 15.75 billion. Meanwhile, UST has lost parity and is now trading at around USD 0.94, according to CoinGecko.

The Price of LUNA Drops by 10%

The price of LUNA, the native token of Terra, plummeted by around 10% between April 7^th and 8^th. That happened due to fear that the UST stablecoin could lose its parity with the USD dollar.

The unpegging between the stablecoin and the fiat currency may have started with massive withdrawals from Anchor Protocol. Over the weekend, the UST deposits in that decentralized money market fell from USD 14 billion to USD 11.2 billion.

There were also withdrawals of the stablecoin UST from the liquidity pools on Curve Finance. Terraform Labs (TFL), the creators of Terra made a withdrawal of USD 150 million in liquidity.

Korea-based company TFL claimed they withdrew that amount as they prepared to commingle funds between groups. However, they redeposited USD 100 million after realizing that UST had started trading at a discount compared to other stablecoins.

Do Kwon, the CEO, and founder of Terraform Labs, tweeted that a wallet made 62% of the withdrawals from Anchor Protocol. However, the Korean entrepreneur quickly deleted that post from his Twitter account.

It is relevant to remember that stablecoins are cryptocurrencies pegged to fiat currencies like the US dollar at a 1:1 ratio. In addition, unpegging refers to stablecoins rising above USD 1 or dropping below USD 1.

Those Supporting the Terra Ecosystem Give their Opinion

The supporters of the Terra ecosystem, known as lunatics, consider the events leading to the recent decline of UST a conspiracy.

Caetano Manfrini is the legal head of the Brazilian cryptocurrency consortium GEMMA Ecosystem. He wrote on Twitter that the attack on LUNA and UST was deliberate and coordinated. He said it was a mere set-up because the project was bothering someone.

Manfrini thinks that a single player made the massive deposit of 285 million UST on Curve Finance and Binance. Then huge shorts on Luna and hundreds of Twitter posts followed it.

However, Do Kwon has underestimated the panic in the market, joking that UST could be out of parity right now.

By Alexander Salazar