Bitcoin (BTC) is still a buy despite the recent cryptocurrency meltdown…
On May 13, the development and redemption of shares in two Terra exchange-traded products issued by VanEck and 21Shares were suspended due to a substantial fall in the digital asset space.
VanEck and 21Shares noted that Terra ETP (LUNA SW) and Terra ETN (VLNA GR) were halted after TerraUSD (UST) stablecoin plunged earlier in the week.
21Shares CEO Hany Rashwan said the company is closely monitoring the situation, adding that the Luna network is presently operating intermittently and inconsistently. In turn, it is producing blocks that are unable to operate normally, disrupting transactions in the process.
This has experts concerned, as the operators at VanEck and 21Shares were forced to halt their networks. And it remains uncertain as to when it will be restarted.
These fears rippled across the cryptocurrency sector, as TerraUSD typically provides safe haven for investors in the speculative crypto market.
But with a large swath of sell-offs, TerraUSD’s algorithmic capacity was overloaded, resulting in various coins rapidly losing their value.
And while this is putting pressure on the sector, it could ultimately be seen as a buying opportunity for prospective Bitcoin buyers.
That’s because Bitcoin is known to swing between higher and lower values. But over the long term, it has continuously risen, making it one of the most popular cryptocurrencies in the world.
So, any price fall just offers a lower entry point before it eventually rebounds and trends significantly higher.
