In addition to macroeconomic factors such as the tightening of the Fed's monetary policy and the slowdown in global economy, significant pressure on bitcoinshowed panic. The process was catalyzed by the collapse of the third largest stablecoin UST with a capitalization of $19 billion, the decoupling of the rate fell on May 09.
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Capitalization UST, $billion Image Source: coinmarketcap.com
In an attempt to maintain the rate of the Terraform stablecoinLabs sold 80,000 BTC from a $2.5 billion reserve, but it didn't help. In a few days, the Terra project lost $40 billion in capitalization, and the internal coin LUNA dropped out of the TOP-10.
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Since Terra was a significant player in the market, init was invested by various companies. Thus, one of the largest crypto funds Three Arrows Capital (3AC) has invested over half a billion dollars in LUNA. 3AC, in turn, was invested by other crypto players. For example, the Voyager Digital broker, which has entrusted over $600 million to
Image source: cryptocompare.com
The collapse of Terra led to the collapse of a number of projects,many of which have either already faced bankruptcy proceedings or are close to it. To pay off the obligations of the company, they began to throw off coins. Tesla was also among them, since Elon Musk could not realize the potential inherent in the idea (for more details, see yesterday's article). In just two months, companies got rid of 236,000 BTC for a total of $5.5 billion.
Image source: arcane.no
In addition to unlucky investors, the list includespublic miners who actively increased production capacity on credit, including on the security of equipment. In May, this group sold more bitcoin than they mined in a month. And in June, the largest of them, Core Scientific, sold 7,202 BTC for a total of $167 million.
Image Source: Cryptocurrency Exchange StormGain
an important role in such a rapid declineBitcoin has been heavily leveraged. However, the fall of the cryptocurrency in the current conditions is not a unique event, and besides, Bitcoin turned out to be stronger than a number of eminent stock market brands.
Image source: cryptocompare.com
Now Bitcoin is recovering, howeverpressure from a number of participants will continue. Troubled companies have not yet repaid their obligations to creditors, and public miners in the event of a protracted consolidation will continue to get rid of assets. According to various estimates, their reserves range from 50 thousand BTC to 70 thousand BTC.
Analytical group StormGain
(platform for trading, exchanging and storing cryptocurrency)
