Originally published on: May 08, 2022
Bitcoin’s price took a hit, dropping close to January lows, sparking concerns of a bearish trend. On May 8, BTC dipped to $34,200 on Bitstamp before recovering slightly. Market volatility increased with thin weekend liquidity, causing BTC/USD to trade around $500 higher.
Popular Twitter commentator Credible Crypto predicted a potential drop to $29,000, indicating a new low for 2022. With bids near $30,000, including those from a whale trader on Bitfinex, the market may see significant movement in the coming days.
Moreover, trouble at the Blockchain protocol Terra added to the downside momentum. Terra faced a massive sell-off of its stablecoin TerraUSD (UST), amounting to nearly $300 million. Despite the disruption, UST briefly lost its dollar peg by up to 0.8%.
The event, dubbed ‘FUD,’ did not significantly impact the markets, according to Cointelegraph contributor Michaël van de Poppe. However, the negative sentiment surrounding Terra’s instability contributed to Bitcoin’s downward movement.
On weekly timeframes, BTC was on track to complete its sixth consecutive red weekly candle, a rare occurrence in its history. This pattern was last observed in 2014, following Bitcoin’s first halving cycle and the Mt. Gox exchange hack.
As Bitcoin faces continued selling pressure, investors and traders remain cautious. The market outlook remains uncertain, with many waiting to see how BTC will perform in the coming weeks.
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