Retail investors have been taking advantage of the flagship cryptocurrency’s recent dip towards the $30,000 mark to accumulate more Bitcoin ($BTC) even at a time in which over 40,000 coins worth over $1.16 billion have moved to exchanges.
According to data from crypto analytics firm IntoTheBlock, retail traders whose addresses have been holding the flagship cryptocurrency for less than 30 days have started adding new funds to their wallets since May 8, the day on which Terra’s UST stablecoin started losing its peg.
Historically, IntoTheBlock notes, these addresses “follow the price action and sell at a loss, but they increased their balance from 1.47m BTC to 1.78m BTC in 7 days.” The price of BTC dropped from around $39,000 at the beginning of May to a $26,000 low during Terra’s collapse, before recovering to now change hands at $29,000.
Terraform Labs’ algorithmic stablecoin UST lost its peg last week after a $500 million withdrawal from its Anchor Protocol led to a large sale on Curve, where liquidity was low. The sale saw UST lose its peg and triggered a bank run. Because of the algorithmic system behind UST, trillions of LUNA were printed while the stablecoin’s value kept on dropping.
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.”
As the firm noted, BTC has been able to remain above the $28,000 mark, partly thanks to retail traders buying the dip. It’s worth noting that more advanced players also bought the dip. These include El Salvador, which announced it was adding $500 million in BTC to its treasury, and TRON DAO, which mirrored El Salvador’s move.
Some analysts remain bullish on crypto despite the sell-off. As CryptoGlobe reported, Bloomberg commodity strategist Mike McGlone has suggested that the price of leading cryptocurrencies Bitcoin and Ethereum will outperform equities markets in the future as the volatility of the flagship cryptocurrency keeps dropping.
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