Crypto Flipsider News – Bitcoin Drops Below $42k As Bearish Trends Flood Altcoins; Luna Buys $173 Million in Bitcoin; Coinbase Suspends UPI Payment In India, Binance Abu Dhabi Approval; Tesla to build solar-powered mining rig
Read in the summary:
- slides below $42,000 as bearish trends engulf Altcoins amid mounting economic pressures.
- Luna Foundation buys $173 million in BTC and becomes the 19th largest Bitcoin holder.
- Binance gets approval to operate in Abu Dhabi, Coinbase (NASDAQ:) suspends UPI payment in India.
- Tesla (NASDAQ:) to build solar-powered mining rig with Block and Blockstream.
Bitcoin Slides Below $42,000 As Bearish Trends Flood Altcoins Amid Mounting Economic Pressure
For the first time since March 23, the world’s largest cryptocurrency, Bitcoin, traded below $42,000, losing in seven of the past eight days. Bitcoin is down 3% in the last 24 hours, falling to $41,425.
The 24-hour price chart for Bitcoin (BTC). Source: Tradingview
As Bitcoin lost 10% in the past week, experts have linked the decline to mounting fears of a Fed rate hike above 4%. Implementing tighter monetary policy as a result of volatile economic conditions could lead to further declines.
The seven-day price chart for Bitcoin (BTC). Source: Tradingview
The prevailing conditions have also impacted Altcoins, with , , and each having lost at least 5% of their value in the past 24 hours.
The 24-hour price chart for Ethereum (ETH). Source: Tradingview
The 24-hour price chart for XRP. Source: Tradingview
The 24-hour price chart for Solana (SOL). Source: Tradingview
(LUNA) lost the most in the top 10, with a 9% loss in the last 24 hours. As a result of market-wide declines, the global crypto market cap has fallen to $1.86 trillion, just 15 days after hitting its 2022 high of $2.17 trillion.
flip side:
- Despite the warning signs of a bearish market, whales have continued to collect Bitcoin, with more bids submitted by Bitfinex whales†
Why should you be concerned?
The rate hike is expected to hurt Bitcoin and tech stocks, which are in sync with cryptocurrencies.
Luna Foundation Buys $173 Million In BTC To Become 19th Largest Bitcoin Holder
In line with its proposal to back the TerraUSD (UST) stablecoin with $10 million worth of Bitcoin, the Luna Foundation Guard (LFG) has announced the purchase of an additional $173 million worth of bitcoin.
Adding $173 million worth of bitcoin to its reserves over the weekend brought the total amount of Bitcoin in Terra’s reserves to 39,879. The sizeable purchase made LFG the nineteenth largest holder of Bitcoin.
Should the Luna Foundation Guard succeed in backing the UST with $10 billion worth of Bitcoin, it would hold the world’s second largest Bitcoin reserves, second only to the Binance cold wallet.
Top 100 Richest Bitcoin Addresses. Source: Bitinfocharts
flip side:
- As the LFG continues to accumulate Bitcoin, Terra’s total locked value (TVL) has fallen from its all-time high of $32 billion to $27 billion.
Why should you be concerned?
By buying $10 billion in Bitcoin, the Luna Foundation Guard hopes to “open a new monetary era of the bitcoin standard”.
Binance Gets Approval to Operate in Abu Dhabi, Coinbase Suspends UPI Payment in India
The world’s largest crypto exchange, Binance, has received the approval in principle from the Abu Dhabi Global Market. Once approved, Binance will be allowed to operate as a broker-dealer in digital assets, including cryptocurrencies.
The approval marks Binance’s third in the Middle East, having previously received the green light from Bahrain and Dubai. Binance CEO Changpeng Zhao clarified that the exchange was “not shunned elsewhere”, further claiming that there is “more to come”.
flip side:
- On the other side of the coin, regulatory influence has forced Coinbase to halt its crypto trading run in India just three days after its launch.
- Coinbase had set up crypto purchases with Unified Payments Couple (NASDAQ:) (UPI), a popular payment system in the country, central to its services.
- The National Payments Corporation of India (NPCI) released a statement claiming it was unaware of any crypto purchases made with UPI. The option is now marked as “temporarily unavailable” in the Coinbase app.
Why should you be concerned?
The news marks an important milestone for Binance, which has strengthened its pursuit of global expansion.
Tesla to build solar mining with Block and Blockstream
To ensure a green future for cryptocurrencies, Tesla has partnered with Blockstream and Block (formerly Square) to build a zero-emission Bitcoin mining rig powered by 100% renewable energy.
On April 8, Blockstream announced that it had begun building a fully solar-powered Bitcoin mining facility with Block and Tesla. The partnership between the three tech giants was initially announced in June 2021.
The Texas mining facility will be powered by the 3.8 megawatt (MW) Tesla solar array and a 12 megawatt-hour (MWh) battery, which will reportedly generate 30 petahash per second of mining power.
According to Blockstream co-founder and CEO Adam Back, the mining facility is designed as a proof of concept for 100% renewable energy Bitcoin mining at scale. The facility is expected to be completed by the end of 2021.
flip side:
- Tesla stopped accepting Bitcoin in 2021 due to the “rapidly increasing use of fossil fuels for Bitcoin mining and transactions”.
Why should you be concerned?
By turning to solar energy, these companies hope to improve the economy of renewable energy sources for mining and give miners a green future.
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