Bitcoin: Bitcoin exchange inflows hit a three-month high

Treasury Secretary Yellen's words once again frightened the panicked U.S. stock market. She said: Although the stock market has suffered from selling pressure, the valuation of some assets is still high. With the U.S. stock market plummeting again, hitting a new low this year, the crypto market was dragged down, creating this wave of decline. During the decline, UST was once again significantly de-anchored, with the lowest price in the morning hitting $0.6, almost halved. Then the Luna Foundation responded quickly, smashing 70,736 bitcoins in two transactions, dragging out all the reserves to protect the prices of UST and LUNA. This was one of the important driving forces for the sharp decline of Bitcoin in the morning. Another part of the force was the liquidation of $920 million in the contract market, which also became the fuel for the decline. So far, this round of panic should have come to an end. Binance's trading volume in the past 24 hours has been four times that of usual, which is a huge level. Therefore, even if the U.S. stock market falls again in the evening, the decline of the crypto market has also come to an end. Whether around 30,000 can become the bottom of this year, these two days will give us an answer.

I want to say a few more words about UST. Its Bitcoin and Ethereum reserves are all used up. If it wants to return to the stability of $1, it can rely on the primary market to exchange for LUNA worth $1, and it can also help UST through capital increase or loans from some institutions. Therefore, in theory, if UST wants to return to $1 in the short term, LUNA will continue to be smashed by arbitrageurs. Don't catch the knife with your bare hands. Today, the circulation of LUNA has increased by more than 10 million, all from the arbitrage behavior of arbitrageurs after buying UST, that is, buying UST in exchange for LUNA worth $1, and then smashing LUNA. Therefore, as long as UST does not return to $1, there is no logic for LUNA to rise in theory. In addition, the ANC pool will no longer be trusted, so the locked-up volume will continue to fall, and the price of ANC will be difficult to stabilize.

This wave of Bitcoin plunge caused 43 institutions to lose tens of billions of dollars, including Microstrategy, Tesla and Meitu. These large institutions are all with us in the loss, but even so, there is no motivation to sell coins. Galaxy Digital's CEO said that although the cryptocurrency lost $111 million in the first quarter, he still believes that the rebound will not happen within 2 months, but firmly believes that cryptocurrency will be adopted by institutions and will definitely rise in the future. In addition, Tron once again spent $15 million to buy 500 bitcoins, and the President of El Salvador also bought another 500 bitcoins at 30,744. Believers are still buying continuously. The selling pressure will come to an abrupt end at a certain moment, and demand will begin to intervene continuously.

Cathie Wood believes that when more and more people begin to surrender and think it is a bear market, the cryptocurrency bear market will soon end. She remains optimistic about the crypto market in the long term, and these emerging industries will grow 21 times in 7-8 years. Cathie Wood has a sharp vision and is considered a big shot in the investment institutions of emerging industries. Her knowledge is trustworthy.

Youtube CEO said that it was a mistake to ban Bankless account, and he will participate in his offline WEB3 and NFT discussion, and hopes to see more encrypted content on Youtube. This is a good signal. If such a super video platform embraces cryptocurrency, its communication power will grow exponentially in the future.

The Indian Goods and Services Tax Council considered imposing a 28% tax on Bitcoin. India ultimately killed Bitcoin through its policies, and the loss of talent will become a major pain point for India at present.

Venezuela is considering imposing a 3% tax on foreign currency and cryptocurrency payments. This wave of tightening by the Federal Reserve will cause great pain to these countries with severe inflation. In order to prevent the collapse of foreign exchange, they will use various means to prohibit the outflow of foreign exchange. Taxation is an ideal way.

Coinshares data shows that last week, cryptocurrency investment products had a net investment of US$40 million, gradually turning from outflow to inflow, indicating that institutional investors are once again paying attention to and participating in the crypto market, which may be a signal of a stage bottom.

Panic 10, has entered the extreme opportunity zone.

Coin News:

Bitcoin: The inflow of Bitcoin into exchanges hit a three-month high, with the 7-day average reaching 1,729 coins. At the same time, the number of addresses with 0.01 coins reached nearly 9.99 million, a record high. More and more people are surrendering to the market, which is a bottom signal. The madman completed the purchase as planned near 30,000 and is waiting for the flowers to bloom.

ETH: In the past two weeks, 330,000 ETH have flowed into exchanges. Just like the logic of Bitcoin, they are all capitulating. However, judging from today's trend, the decline has obviously become weak and the most difficult days are over.

COMP: It received a "B-" rating from S&P, becoming the first Def product to receive a traditional institutional rating. This rating will bring a large amount of buying. With the endorsement of the rating, there will be financial products that meet the rating standards buying it, which is a medium- to long-term positive.

TRX: TRON Fed bought 595 million TRONs, spending more than 45 million. Regardless of whether TRON Fed is centralized or not, at least it bought them in the short term and will not be sold easily. After all, everyone is watching its address. Therefore, it has a chance to continue to be strong in the short term. As for whether it will be sold in the future, that is not within the scope of consideration now.