It is the first time Bitcoin failed to lead the pack amid the turmoil in the market as the latest crypto price plummets had a twofold reason. One is the massive declines by the leading decentralized stablecoin UST, and the other is the escalating fear of increasing inflation and a possible recession.
Meanwhile, Bitcoin saw a massive crash well beneath the $30,000 mark. While writing these lines, the dominant cryptocurrency traded at $27,789.33, losing 10.21% over the past day.
Bitcoin Hits News Records
Bitcoin’s crash ruined the market sentiment as investors fled the market. Monstrous declines by TerraUSD led to the selling of BTC worth approximately $3 billion in five days (from the LFG reserve). That left Luna Foundation Guard’s balance sheet, of $10 billion Reserve, at $110.82 million.
Meanwhile, escalating inflation has investors perceiving BTC as a risk-on product. Such a narrative saw most market players selling their assets to minimize losses or protect their profits. Moreover, that’s logical as Bitcoin’s correlation with stock markets stands near 0.58 (CoinMetrics April 2022 data).
Also read:Meanwhile, investors sold approximately 100K $BTC within five days, totaling $3.17 billion. Nevertheless, more than 61K Bitcoin worth more than $1.94 billion experiencing losses dented investors’ optimism.
Market sentiment also reflected the dampened investor mood. Even individuals that purchase their BTC beneath $30K remained worried as yesterday’s recovery attempts under $30,000 suggest it might take time, killing profits. That had BTC’s optimism absence plunging to the lowest mark since February 2020.
Moreover, BTC holding whales attained their highest activity levels as transfers worth over $100,000 peaked near $3.5K, the highest recorded since January 2022 as BTC lost grounds at $30,000. As fear dominate the overall market, it might take time before whales reveal positive activity. The Fear index touched the lowest level for 2nd time in 2022, and investors may need to hold their assets until some optimism resurges in the marketplace.
Meanwhile, some cryptocurrency experts trust Bitcoin bottomed at $27K. That means the crypto can launch gradual recoveries. Nevertheless, bears control the market at this publication. Let us wait for what upcoming sessions will hold.
Stay around.
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