Terra isn’t dead: the network is back up and running on a new blockchain, focusing on a more decentralized governance model. The community is making no attempts to revive its recently failed TerraUSD (UST) stablecoin. It has, however, re-launched a new version of the LUNA governance token, restarting its supply at 1,000,000,000 tokens. Here are the facts on the new blockchain, why it was launched, and the new token’s airdrop/ distribution. Background on Terra 2.0 Terra 2.0 (now known formally…
Since peaking at nearly $48,000 in March, the price of the world’s largest digital currency Bitcoin has rested somewhere around $40,000. Recent massive outflows from exchanges could change this soon, according to analysts.
$1.04B Worth of BTC Exits Centralized Exchanges
The massive exodus of BTC has birthed speculations about when the bearish trend will end or if bullish price action could be in sight. Bitcoin is currently trading at $40,182, however, its behavior from the past day seemingly reflects the market’s bearish inclinations. Its price recently rose to $41,148 but dropped to $39,635 yesterday before it eventually evened out.
One pointer in terms of future price action is the flow of the pertinent asset in and out of exchange platforms. In recent times, these companies have witnessed customers pull out large quantities of Bitcoin. Over the past day 25,878 BTC, altogether worth 1.04 Billion USD have exited crypto exchanges.
The crypto market as a whole has witnessed an outflow totaling $1.9 billion. With an inflow of only $972.2M in comparison, the net flow rests at a negative $925 million. According to analytics platform Santiment, who also provided the data, this is the largest difference in 5 weeks.
Potentially Positive Price Action
The massive outflows could indicate an accumulation trend among investors. This in turn points toward the general sentiment of an upcoming bullish trend. Investors would rather hold on to their assets than store them on less secure exchanges.
What this essentially means is that a rise in value might be ahead, Santiment noted in a tweet,
Historically, large quantities of BTC moving off exchanges lead to price rises given a few days for the pattern to hold.”
A negative net flow is not always linked to accumulations, additionally, a price increase is not guaranteed. However, this remains widely acknowledged as a positive movement. As the BTC in circulation diminishes, liquidity on the market follows and this can generate additional pressure coupled with increased volatility.
Many have a favorable outlook on Bitcoin’s prospects. One of these is Antoni Trenchev, founder and CEO of crypto lending platform Nexo. According to Trenchev BTC’s price could rise to $100,000 in a year.
He also stated that if the stock market perhaps crashed, the Federal Reserve would swiftly return to “easing.” This would in theory provide the crypto market with further momentum. Celsius Network CEO Alex Mashinsky has similar beliefs; he anticipates a recession in 2023 and expects cryptocurrencies to perform well.
Mashinky has encouraged individuals to ditch stocks for BTC.
From the beginning of the year the stock market has been down but Bitcoin has actually recovered most of its losses,” explains the executive. “You’ve seen bifurcation, we’re seeing separation meaning Bitcoin is finally starting to behave as a safety asset and that’s why again I’m selling my stocks and I’m buying more Bitcoins.”