Even as over 40,000 coins worth over $1.16 billion have moved to exchanges BTC, retail investors have been taking advantage of the flagship cryptocurrency’s recent slump towards the $30,000 mark to accumulate more Bitcoin.
Retail traders whose addresses have held the flagship cryptocurrency for less than 30 days have started adding additional cash to their wallets since May 8, the day Terra’s UST stablecoin began losing its peg, according to data from crypto analytics firm IntoTheBlock.
These addresses, according to IntoTheBlock, “follow the price action and sell at a loss, but they grew their balance from 1.47 million BTC to 1.78 million BTC in seven days.”
BTC fell from roughly $39,000 at the beginning of May to a low of $26,000 during Terra’s collapse
Last week, Terraform Labs’ algorithmic stablecoin UST lost its peg when a $500 million withdrawal from its Anchor Protocol triggered a massive sale on Curve, where liquidity was scarce. The sale caused UST to lose its peg, resulting in a bank run. LUNA was manufactured in trillions due to the algorithmic system underpinning UST, but the stablecoin’s value continued to fall.
The collapse took BTC’s price down and has seen BTC deposits into exchanges increase dramatically over the last few days. Per IntoTheBlock, around 40,000 BTC “has been spotted as inflows into exchanges. This coincides with the downwards sell pressure that we have been experiencing.”
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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