Is Terra Luna Classic a “Gold”?
Terra Luna Classic (LUNC) has jumped back to the headlines this week but reads positive news this time. Algorithmic Altcoin has jumped more than 200% in the last 7 days, reaching the highest price in the last 3 months.
While the eminent Altcoin begins its slow rise from zero, a unique trend has been spotted. It seems that LUNC prices increase whenever Bitcoin prices drop, and this is not a new trend. The opposite relationship between LUNC and BTC dates back almost two years, even when Luna was at its peak.
Only six months ago, Luna was one of the 10 best cryptocurrencies in the world. In April of this year, it reached a peak of $ 119.18, when the rest of the crypto market coins suffered from a strong bearish spell.
Between January and April this year, Bitcoin prices fluctuated in the $ 40,000 area, even falling to $ 35,000. However, during this period, Luna continued upward movement from $ 85 to nearly $ 120. After the Bull Run, Luna lost all its value due to the Depeg of its stablecoin.
A similar trend was also seen during Luna’s increase in 2021. Altcoin always gets a significant attraction every time the price of Bitcoin falls. Because Terra initiated a new tax burning mechanism in Luna Classic earlier this week, LUNC began to pump again. On the other hand, the price of Bitcoin has begun to fall.
The price of BTC has fallen by more than 10% in the last two weeks, while LUNC has pumped nearly 300% in the same period.
This trend is very similar to the relationship between gold and the stock market. Generally, when the stock market drops, the price of gold rises. This reverse correlation between the price of gold and equity applies to all global economies. This is not only for pure gold – even gold goods such as coins, bars, jewelry, and gold ETF soar in prices when the stock market is poor.
Although LUNC Classic and Bitcoin follow a similar trend, the relationship between gold and the stock market has been observed for over a century. So, LUNC is perhaps the gold of the cryptographic industry, but we cannot say it with certainty until this trend is observed for a long period.
Is Terra Luna Classic a “Gold”?
