Investors Continue To Buy Bitcoin Dip As 40,000BTC Is Moved To Exchange Platforms 

Although over 40,000 BTC with a total value of more than $1.16 billion has been moved to exchange platforms, retail traders have been using the current decline to accumulate more BTC.

Crypto Traders Continue To Invest In BTC Despite Price Drop

As per data from cryptocurrency analytics company IntoTheBlock, crypto traders who have held the popular digital currency for not up to a month have been adding additional funds to their crypto wallets since the 8th of May, when the price of Terra’s UST began to drop below the $1 region.

According to IntoTheBlock’s analysis of historical data, these wallet addresses are following the price movement and selling at a loss. Yet, they could grow their BTC balance from 1.47 million to 1.78 million in only one week. 

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The price of one BTC fell from about $39,000 at the start of May to around $26,000 during the collapse of Terra’s UST. However, malaria crypto has recovered and is trading in the $29,000 region.

The stablecoin UST issued by Terraform Labs was unable to maintain its anchor to the dollar a week ago when a withdrawal of $500 million from its Protocol resulted in a massive sell on Curve, where there was a lack of liquidity. 

A bank run began due to the transaction, which caused the UST to lose its peg. The algorithmic framework that underpins UST resulted in the printing of billions of LUNA even while the stablecoin’s value continued to drop.

The fall caused a decrease in BTC price, and during the last several days, there has been a significant rise in the amount of Bitcoin deposited into exchanges. According to IntoTheBlock, an amount equivalent to about 40,000 BTC has been observed as inflows into exchanges. This is simultaneous with the negative impact on sales recorded so far.

Crypto Supporters Remain Bullish 

According to the company, Bitcoin has so far maintained its position above the $28k barrier. This is because of the recent activities of retail traders who have been buying the dips. It is important to point out that more experienced players also purchased the dip. 

These entities include countries like El Salvador, which recently announced that it would be adding $500 million worth of BTC to its national treasury, as well as TRON’s DAO, which took the same action.

Despite the recent decline in crypto prices, some experts continue to have an optimistic outlook on cryptocurrencies. According to a report by CryptoGlobe, a commodity strategist at Bloomberg, Mike McGlone speculated that the price of top digital currencies such as BTC and ETH will outperform the equity market. This prediction comes as Bitcoin’s price continues to decrease.

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