Even as over 40,000 coins worth over $1.16 billion have moved to exchanges, retail investors have been taking advantage of the flagship cryptocurrency’s recent slump towards the $30,000 mark to accumulate more Bitcoin ($BTC).
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, before returning to trade at $29,000 currently.
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.
BTC’s price has dropped as a result of the crash. While, deposits into exchanges have risen considerably in recent days.
Around 40,000 BTC “has been noticed as inflows into exchanges,” according to IntoTheBlock. This is in line with the downward selling pressure we’ve been seeing.”
BTC has managed to stay over $28,000, according to the business, thanks in part to retail traders buying the dip. It’s worth mentioning that the dip was also purchased by more advanced gamers. El Salvador, for example, stated that it will deposit $500 million in BTC to its coffers. Then, TRON DAO followed suit.
Despite the sell-off, several analysts remain bullish about cryptocurrency.
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