Bitcoin (BTC) fell all the way to $30,000 this week. This is largely due to the sheer amount of fear and uncertainty in the traditional financial markets that bitcoin correlates strongly with. Meanwhile, however, a fiasco with the terra (LUNA) altcoin is causing even more sales pressure.

Bitcoin price 2.5% in the min

The bitcoin price fell to a low of $30,000 Monday night. Bitcoin then made a small bounce, but the price did not go beyond $32,300 yesterday morning. Yesterday afternoon, bitcoin was again rejected around this price and then dropped to $30,400 around midnight.

By early this morning, bitcoin recovered slightly, but was rejected as early as $30,650 and then plummeted to $30,300. At the time of writing, bitcoin is recovering to a price of $31,000 on KuCoin and $29,500 on Bitvavo, but is still down 2.5% today.

Terra crash has consequences

Terra (LUNA) was recently massively buying bitcoins to serve as a reserve for the UST stablecoin. This accumulation had a bullish effect on the BTC price. Meanwhile, the Terra project seems to dump all 80,000 BTC, the UST price has decoupled and the LUNA price has crashed hard. This is putting even more selling pressure on BTC and the market is concerned that this incident may attract regulatory attention.

Bitcoin correlation with S&P 500 on ATH

Despite this, bitcoin was already in a downward trend, as were the stock markets. The correlation between bitcoin and the S&P 500 even has a new one all time high reaches:

Still, opinions remain divided as to whether bitcoin has bottomed out around this $30,000 mark. We don’t see any convincing yet rebound take place. Before bitcoin can really recover, we may have to wait for stocks like the S&P 500 to bottom out as well. However, according to Ecoinometrics, historically that could take some time.

Meanwhile, for the first time since the March 2020 crash when the coronavirus pandemic broke out, more than 50% of bitcoin investors are in loss, IntoTheBlock reports:

Crypto Insiders Premium for bitcoin analytics

Do you want to learn more about trading crypto and analyzing prices? Join Crypto Insiders Premium and come and have a look for free for the first 30 days! Ask analysts questions, chat with our avid community, and receive technical and fundamental analysis daily.

LEAVE A REPLY

Please enter your comment!
Please enter your name here