Terra down at least $250 million in crunch
Still near its lowest levels since late February, the pair had nonetheless avoided a rematch of 2022 lows at the time of writing despite low-volume weekend market conditions.
In his latest Twitter update on May 6, popular trader Anbessa highlighted the planned support level to buy Bitcoin in what he described as a “fakeout” — a zone beginning at just under $33,000.
Twitter friendly, easy words
Superior we are. pic.twitter.com/Lt5XT5rRKw
— AN₿ESSA (@Anbessa100) May 6, 2022
While some eyed profit opportunities, however, there was no hiding others’ losses, notably those of the Luna Foundation Guard (LFG), the nonprofit organization attached to Blockchain protocol Terra which this week purchased $1.5 billion of BTC in over-the-counter deals.
February buyers may have exited BTC positions
Analyzing possible reasons for the extent of Bitcoin’s losses beyond stock markets, on-chain analytics platform CryptoQuant noted that speculators may have had an overriding influence on the week’s proceedings.
Exchange inflows, it revealed on the day, had involved coins dormant for maximum three months, and thus likely to be owned by more speculative investors.
Three months ago, around the start of February, was when BTC/USD had begun rising rapidly after putting in its $32,000 lows. As such, those investors would have hit breakeven point this week.
“According to CryptoQuant data, the decline in the past two days may be dominated by short-term holders. On the 5th and 6th, a total of 11.76k “young” BTC held for less than 3 months flowed into the exchange,” journalist Colin Wu commented on the numbers.
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