April 25, 2024

Bitcoin Hangs on to $36,000 While Report Claims Price Sell-off Emanated from Near-term Traders

The price of Bitcoin got to settle down at $36,000 as of the 7th of May. The market’s volatility eventually cooled off while moving into the weekend.

Terra (LUNA) Goes Down by at Least $250 Million in Crypto Crunch.

According to reports from TradingView and Cointelegraph, the pair of Bitcoin and the US Dollar was hovering around the $36,000 area in movements overnight. This came after the top crypto asset lost up to 12% of its total market value in a period of 72 hours prior.

While it is still very much close to its lowest level yet since last February, Bitcoin has tried to stay above the lowest point of 2022 so far. The asset managed to stay marginally afloat in spite of the market conditions with low volumes this weekend.

Popular crypto trader, Anbessa, took to his Twitter page recently to highlight the plan of a level of support set out to purchase Bitcoin in what he called a “fakeout.” It is said to be a zone starting at right beneath $33,000.

As some traders are looking ahead at an opportunity to maximize their profits, there is no way to hide the losses of some others. Notable losers in the current market downturn include LUNA Foundation Guard. The not-for-profit organization that works in conjunction with the Terra blockchain protocol bought Bitcoin to the tune of $1.5 billion in fast deals in the course of the week.

As reported by BitInfoCharts, an on-chain monitoring platform, LUNA Foundation Guard had gone down by up to $240 million worth of Bitcoin in its stash as of the time of putting this piece together. This does not include its latest purchases made during the week.

According to reports from Cointelegraph, the co-founder of Terra, Do Kwon, has restated the platform’s commitment to purchase unlimited Bitcoin. The plan is to effectively give a backup to their USD stablecoin, TerraUSD.

Peter Schiff, a skeptic of the Bitcoin system, however, said that whales were to be blamed for the position of Bitcoin at $36,000. Peter Schiff happens to be a gold investor rather than a crypto bug. 

Buyers in February Might Have Left Bitcoin Positions

While stating why Bitcoin incurred such losses over the effect of the stock market, CryptoQuant noted that speculators might have had a huge influence. The on-chain analytic firm thinks speculators had an overriding effect over every proceeding of the week.

The firm further revealed that inflows from exchanges involved assets that had been dormant for a maximum period of three months. Hence, there are chances that they were owned by investors who are speculative.

The price of Bitcoin had begun to rise rapidly around the beginning of February after reaching the low point of $32,000. With that, those set of investors might have got to the point of breaking even this week.

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