Crypto Quarterly Wrap-up: What you need to know for Q1 2022
Q1 has certainly been a rollercoaster in the crypto universe, but what exactly was the top news that dominated the markets. Continue reading to discover the Q1 2022 crypto wrap-up your need.
Bitcoin has been booming in Q1 of 2022. After a rocky start to the year, at the end of March Bitcoin reached an all-time high for 2022 breaking the resistance point and reaching a whopping $47K.
Some analysts are saying that NTC could hit $100K in 2022! From making reserves by other foundations to donations in crypto and the governments embracing crypto, all these changes have helped boost Bitcoin along the way in 2022.
The well-known Yuga Labs, original owners of the Bored Ape Yacht Club NFT collection, acquired two more of the most valuable NFT collections: Crypto Punks and Meetbits. The crypto community-alike was then shocked a few days later when Yuga Labs released APE Coin by first airdropping it to Bored Ape Yacht Club NFT owners and then listing it on the public market.
Terra (LUNA) certainly was mooning in Q1, but why? Let’s get into it!
Terra and its native token, LUNA, have been acquiring massive amounts of Bitcoin for its BTC reserves. Nobody really knows the true reason as to why the Terra Foundation has been purchasing and wanting to acquire even more BTC, but the only real answer is to help build their own UST. UST is a type of stablecoin in the Terra ecosystem where a smart contract-based algorithm keeps the price of UST to $1 at all times by burning (permanently destroying) LUNA tokens. This, in turn, allows the creation of minting UST tokens.
Is LUNA an underdog token that could rise to even more popularity, or will UST burn it and rise to the top? Time will tell as eyes are set on the Terra Foundations' moves.
Biden’s Executive Order
Lastly, Biden’s executive order was announced on March 9th. These mandates have pushed prominent governmental organizations to have a framework for cryptocurrency. The order addresses how digital assets could affect organizations and how they would be introduced as a normal means of currency.
Essentially, it is a broad review and base. Some analysts have speculated that Biden’s announcement and enactment of this “Executive Order on Ensuing Responsible Development of Digital Assets” is just the beginning; as it may push the US to a more crypto-dominated space. The USA is already enabling crypto ATMs and accepting Bitcoin in various retailers, but the fine line comes when the government starts to get involved. Will the Biden Administration be able to balance the delicate act of unregulated digital assets to become ‘regulated’?
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