The huge crashing sound that woke crypto cat Mochu up!!
Hi, guys, I woke up hearing a grand noise of a huge crash. That really scared me, so I hid down taking my buddy cat Garu under the cot with me, till I was getting my breath back.
No more Caturday posts, so we cats make appearances only on Mom’s crypto posts
Right, sorry for the abrupt beginning, yes I am white cat Mochu who is nowadays a crypto cat making appearances in my Mom’s crypto posts. She’s not able to write a caturday post of late, because crypto keeps her busy. Mother’s got to post an article on Parallel Finance DEFI once a week, because she’s participating in Parallel Finance’s Ambassador program, where for writing a decent article on Parallel Finance, she gets points.
So, Caturday posts are out of her limits now, as she spends Saturday doing a post for Parallel Finance. So we her cats can only come through my mom’s crypto posts these days.
Back to the crash sound story narration by Crypto cat Mochu
Sound sleep before Cat Mochu woke up saying he heard a crushing crashing sound
Ah, well so after getting my breath back, me and cat Garu set about investigating our vincity to see what the hell crashed making a crushing noise like that!!
So, I made cat Garu check the balcony, and other spots of our room. I would say he was not eager on this crash subject, he kept saying that I dreamt of the sound of thunder and woke up since it’s rainy season here. But, I am sure that crash sound was real!!
Cat Mochu makes cat Garu investigate the room for the root cause of the crash sound Mochu feels he definitely heard!
Well, Garu was sure nothing crashed outside the balcony, although who knows, out of view a tree may have fallen down making that crash sound. These days, there are very few trees left so it is a shame if even one falls off, whatever crashing sounds falling trees make!
Cat Garu is sure no heavy crashing objects are there outside the balcony
Challenging task of opening door for cats to carry out their investigation examining the entire house
So, we set about to check if the crash happened in other parts of the house. Before that, the door of the room had to be opened and Garu never even tried opening the door, but I cat mochu finally opened the room door because I wanted get to the bottom of the mysterious crash sound.
Here is the video of me, crypto cat Mochu opening the room door ;
BtcSolarCat found the source of the crashing sound - it was the Crypto Market Crash of course!!
The ladder is intact, nothing crashed in the house to justify cat Mochu's feeling of hearing a crashing noise, says cat Garu.
Later cat Garu, understood what that crash sound which cat Michu must have heard was because he is a crypto cat called BtcSolarCat and he could understand that there is a crashing vibe in the crypto market.
Yes, that crashing noise was of the market crash of course, what with the thunder noises of the past few nights I was confused about this loud market crash noise.
Besides, it’s only because I am a sensitive crypto cat that I could hear the sound of the Market crash, I bet no one else, cat or human heard this crashing sound!!
Crypto total Market Cap support breaches down the support level of 1.508 T
However, if you take a look at crypto market cap charts, there will be no confusion about this crypto market crash.
Total Crypto Market Capitalization chart from Tradingview
Continuous Crypto Market fall since April 4th but last few days the falls has been rather steep not gradual!!
Yesterday, my Mom noticed that the Total crypto Market cap chart, was indicating that sell offs of crypto may make the crypto total market cap breach support of 1.508 T and sell offs may happen till Total Crypto Market Cap falls further to next support level that is 1.376 T.
Although it was possible yesterday that sell offs would stop with Total crypto market capitalization finding support at 1.508 T, as total crypto market cap has never fallen below this level since Aug of last year.
In Jan and Feb months too, sell offs took place and Total Crypto Market Capitalisation came down finding support at 1.508T and then bounced up from here, as sell off stopped and buyers came in.
Well, now a big green candle has emerged on 1.376 T level, so perhaps sells off have stopped with buyers entering so the total crypto market cap won’t fall below this level.
Blimey!! terraUSD fails to hold its peg to the US dollars and falls to 0.80 levels !!
As you can see huge fall in the Crypto Total DEFI Market Cap in the past few days Source : Tradinview
Alright and a sad reality with this crash is that liquidations will happen for those who borrowed on DEFI platforms and you know what !! UST, that is the terraUST, the largest decentralised stable coin out there has lost its peg to the dollar very badly.
Right now, when writing this post, terraUST is 0.89, but its peg came down further down earlier to 0.7 and Luna’s price came damn down as well.
Although the terraUSD peg has recovered to 0.92 cents, it crashed to 0.7 cents levels. So, terraUSD has miserablely failed to maintain its peg to the dollar!! Source: Tradingview
Unfortunate are those who lose money because of their collateral liquidation
My Mom poor thing is shocked as well, she did not expect Luna’s price to fall so much and had some borrow position on Anchor Protocol with her Luna. She overcollatised her loan so that there will be no liquidation till the price of Luna falls below 38 dollars, and it did, poor thing.
Anyway, she must have lost a small amount if liquidated because her loan position was small, still its sad):, what a indirect and complicated way of losing money!!
Onset of the red days in crypto ever since The US Fed has raised interest rates
Severe crash in crypto prices today, yesterday as well, prices were in red. Source: Coingecko
Hmmm… well this crash is certainly a hard crash and to tell you the truth, it’s a period of uncertainty so I hear with Fed having raised the borrowing interest rate by 50 basis points.
This was an anticipated move because the Fed was contemplating to take measures to tamper inflation and one method is the well known monetary tightening with raising of the interest rates, so that money is not available at cheap rates to borrow.
So, the last few days since the US Fed has tightened its monetary policy, there have been red days in all markets besides crypto.
Massive sell offs of assets happening in the Market
This is because with the cost of borrowing increased people sell off their risk on assets and take to safe heaven assets. There is a general expectation of huge sell offs by big investors who will pay back their loans by selling off their assets. There is also a general expectation of less money being out there in circulation for these big investors to invest.
Now, I also hear that public fears that the recession phase has set in as well, so these sell offs may be because of that.
@Cuddlekitten’s love always inspires this author to create some cat related post!!
Anyway, let me go and chill.
Thanks for reading and my Mom would love to thank 