Anxiety reigns on bitcoins markets due to the continued fall below 8 year low.
BTC / USD pair dropped to 30,334 dollars on Bitstamp, according to Cointelegraph Market Pro and TradingView. Before the weekend marked short-term support around 36,000 dollars, but it did not last long due to low liquidity.
May 9th anxiety intensified since Bitcoin prices reached a record low in July 2021 stood at $30,334.
Galaxy Digital founder Michael Novogratz said that the correlation between stocks and cryptocurrency will put even more pressure on the crypto market and volatility will increase over the next few quarters.
“Cryptocurrency most likely will be traded in correlation with the Nasdaq, until we reach a new equilibrium. My intuition tells us that in the next few quarters we expect a blow to investors on the very volatile and difficult market “, – he said.
A recent report by Bank of America analysts questioned the ability of Bitcoins to hedge inflation as cryptocurrency highly correlated with the stock market.
According to CoinGecko, the digital market lost about half a trillion total market capitalization.
The mood of traders was affected by rising Fed interest rates, falling stock prices and fears that the Terra coin (UST) is pegged to the dollar.
1-day schedule BTC / USDT. Source: TradingView
According to cryptanalyst Twitter Akasha, bitcoin whales were accumulated due to previous recessions and lateral price movement. “Purses containing from 10 000 to 100 000 The BTC, actively buying from April 30,” – said Akash. Although these figures give some hope, it is important to remember that no one can give you no guarantee of future trend changes.
Considerable influence on the sharp decline in Bitcoins May 8 have news about the difficulties with blockchain – Terra protocol. Terra company has committed to buy an unlimited number of BTC to support its stable coins in US dollars TerraUSD (UST), and this period has prepared her for great trials because of a mass sale of UST for about $300 mln.odnim market participant. UST peg to the dollar briefly weakened to 0.8%, despite the fact that the failures were small.
“Today’s attack on Terra-Luna-UST was deliberate and coordinated”, – said Caetano Manfrini lawyer crypto-Brazilian business forum GEMMA.
At the same event before Kwon responded: “The mass dumping 285 million UST on Curve and Binance, a perfect one player, which was followed by massive shorts on Luna and hundreds of posts on Twitter. Net production. The project is getting in the way. on the right track! “
However, despite the words Kwon, at the time of this writing, UST traded 0.5% below its target level of 1 dollar, CoinMatketCap data.
Weekly schedule threatens to reach a record level for the past 8 years, the total market capitalization of cryptocurrency currently stands at 1.411 trillion dollars, and the level of dominance of Bitcoin is 41.5%.
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