In a short time, much has happened. Bitcoin’s price has risen to a three-month high in the last seven days, reaching levels we haven’t seen since January 2, 2012.
The total increase is around 14%, as Bitcoin traded above $47,000 earlier this morning. The cryptocurrency market has risen by $120 billion over the last 24 hours. We examine three possible reasons.
Terra Buying Bitcoin
As their BTC purchases keep coming in, it is obvious that Do Kwon’s Terra appears to be the main catalyst for Bitcoin’s recent price rise.
CryptoPotato reported last week that Do Kwon, the co-founder of Terraform Labs and CEO – the company behind Terra protocol – stated his intention to purchase a staggering $10 billion worth Bitcoin in the future. Kwon stated that they have $3B funds available to seed the reserve. This was something many people didn’t take seriously.
A new era of Bitcoin standard monetary era will be opened by $UST and $10B+ in $BTC reserve.
Electronic cash P2P that’s easier to use and more appealing to keep #btc
— Do Kwon
(@stablekwon March 14, 2022
The Bitcoin purchases began to roll in just a few days after that. Terra has been buying Bitcoin in large quantities of $125 million. Analysts believe there is an upcoming supply shock.
We now reach reason number 2.
Supply is getting thinner
Pentoshi, a popular cryptocurrency proponent and industry commentator, commented on the above. He outlined the following regarding Terra’s Bitcoin purchases:
The impact of 2.5-3k BTC per daily of supply over a long time is huge. As supply diminishes, those who are short of Bitcoin will have to cover more. The more scarce the material, the greater its importance. This clip can help to bring back the apes. Do Kwon is the Lord of the Apes.
The analyst is referring to the concept of a supply shock, where the demand is greater than the supply. This essentially pushes up the price.
Market data also showed that bears were not adequately prepared for this move. We reported that Bitcoin volatility caused liquidations of over $410 million in the last 24 hours. Approximately 80% of these liquidations were short positions.
Positive Changes in Overall Market Sentiment
Bitcoin and the entire cryptocurrency market are still closely linked to Wall Street. Native proponents may wish to distance themselves from this.
The green has been trading on some of the most important US indices, including the S&P 500 and Nasdaq.
Additionally, tech companies such as Tesla are seeing significant gains. TSLA stock has risen for the ninth consecutive day, rising by a staggering 35% during the same period.
This could mean that investors are more susceptible to risk-on trades, which is exactly what Bitcoin does.
Overall, it is important to be cautious as the current price hovers around the annual close. Last time, however, it was not able to reach that level.
Marla Brooks – Financial Analysis
My name is Marla Brooks, and I am the mainstream behind the”observednews.com” for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.