Skip to content
Home » Bitcoin near $40,000 at pre-Terra crash levels

Bitcoin near $40,000 at pre-Terra crash levels

Important facts:
  • The Terra/Luna platform crash occurred on May 9, 2022.

  • On that day, Bitcoin rose from $40,000 to $30,000 in just a few days.

Expectations of a Bitcoin spot ETF in the US are already fueling the market, with Bitcoin approaching resistance at $40,000 per unit for the first time in more than a year. This behavior is quite a milestone, especially considering that more than 570 days have passed since Bitcoin was quoted above this price.

So far this week, Bitcoin has not stopped hitting yearly highs starting at $38,000 and exceeding $39,730 at the time of writing. It appears that the final hurdle is at $40,000, against which there remains resistance at the moment.

This is what the graphics show Bitcoin has not reached such levels since May 8, 2022, one day before the fall of Terra/Luna. A platform that claimed to collateralize its stablecoin Terra USD with Bitcoins, promising an annual interest rate of up to 20%. And that during a liquidity crisis, it caused all of its depositors to lose millions of dollars as it was unable to maintain parity of its stablecoin with the dollar, even liquidating its reserves in Bitcoin and losing 99% of its value.

In 2022, Bitcoin hit an annual high of over $47,600. Source: Tradingviews.

After the resounding decline, as seen in the chart, Bitcoin suffered further significant declinessuch as in November 2022, during the FTX exchange bankruptcy proceedings that led to this Bitcoin price at its lowest point about $16,000.

With the launch of BlackRock's Bitcoin Spot ETF application last June, Bitcoin price began a slow but active price recovery and reached $30,000 again. Now, with future ETF approval imminent in January, with some claiming there is a 90% chance of approval, the market is already starting to mark its upward trend.

Leave a Reply

Your email address will not be published. Required fields are marked *