Despite the fact that the Crypto Fear & Greed Index indicates the market is in an “accumulation trend” due to a price decline, Bitcoin (BTC) whales are said to be in an “extreme fear”
An on-chain analytics firm’s data shared on social media shows an increase in the number of BTC wallets holding from 10,000 to 100,000 since April 30.
Due to the sell-off on Terra’s Anchor Protocol’s UST deposit reward scheme, the UST stablecoin’s peg to the US dollar was lost and the price fell to a low of $0.61 earlier this month.
Protecting the protocol’s UST stable coin peg is Luna Foundation Guard’s Bitcoin reserve, which has been deployed at a cost of 28,205 BTC. The cryptocurrency’s price is expected to rise from its current low of $0.61 to a recent high of $0.94 before descending again. An additional effect of the BTC LFG currently in use could be a rise in market selling pressure.
The price of the leading cryptocurrency is influenced by a rise in interest rates and a sell-off in the stock market. Recent Bank of America research shows that bitcoin isn’t acting as an inflation hedge because the stock market moves in lockstep with it.
They believe that Bitcoin and stock prices will continue to move in tandem over time. Since June 2021, the correlation between the most popular cryptocurrency and gold has dropped to almost zero, despite the comparisons.
There appears to be an “extreme fear” in the market based on the recent drop in the Crypto Fear & Greed Index to 10. The page of the index says that excessive fear “can be a sign that investors are overly concerned,” as it “could be a buying opportunity.”
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