Cryptocurrencies experienced a mini bounce, but investors remain “highly cautious" following Terra and Luna’s crash.
Bitcoin was up 2.79% to US$30,358, as the coin continues to flirt at the key support level of US$30,000.
Ethereum on the other hand was up 2.67% to US2,072, also lingering around its own key support level of US$2,000.
According to Naeem Aslam, a market analyst at Avatrade, “the collapse of Terra and Luna has made crypto investors highly cautious and brought them bad memories of the past”.
“The digital gold is struggling to live up to its expectation, and by no means is it acting as a safe haven, at least for the time being.”
“Terra’s crash has reminded traders how risky crypto investments are, and they should think before putting their savings in this asset class.”
However, Aslam believes that, despite the scars of the Terra and Luna crash, “these memories may not have a lasting influence".
“Crypto traders are highly motivated to invest more than they can afford because of its risk to reward ratio," he said.
In some of the alt-coins, BNB was up 4.66% to US$306.57, Cardano was up 3.84% to US$0.5815 and Solana was up 6.2% to US$57.12.