1. Federal Reserve Rate Cut Created Uncertainty

   The US Federal Reserve cut interest rates again, lowering them to a range of 3.75% to 4%. Normally, lower rates support risky assets like cryptocurrencies. However, Fed Chair Jerome Powell said he is not sure if another cut will come in December. That uncertainty disappointed investors who had expected a more positive outlook. As a result, many traders moved away from crypto in the short term, causing prices to fall.

2. Global Crypto Market Decline

   The entire crypto market fell by 2.19 percent to a total market capitalization of 3.73 trillion dollars. When the overall market drops, most cryptocurrencies follow the same direction, including LUNC. This shows that LUNC’s recent decline is part of a wider trend rather than a project-specific issue.

3. Bitcoin’s Price Pullback

   Bitcoin pulled back to around 108,000 dollars. Because Bitcoin leads the crypto market, its movements strongly affect other coins. When Bitcoin goes down, altcoins like LUNC usually follow as traders reduce their positions to limit risk.

4. Rising Fear in the Market

   The Crypto Fear and Greed Index dropped to 34, indicating growing fear among investors. When fear dominates, people prefer to hold cash or stable assets instead of cryptocurrencies. This reduced demand puts downward pressure on prices across the market.

5. Large-Scale Liquidations

   Over 829 million dollars worth of crypto trading positions were liquidated in a 24-hour period. Most of these were long positions totaling 662 million dollars. Forced selling from liquidations often accelerates price declines, making short-term drops sharper and more sudden.

Combined Effect on Terra Classic

All these factors have created a cautious market environment. Reduced liquidity, lower confidence, and global uncertainty have pushed LUNC prices lower. While short-term volatility may continue, lower interest rates and easing financial conditions could help crypto, including LUNC, recover once markets stabilize.