Glenn Hutchins, Chairman of North Island, spoke to CNBC about one of the reasons why major tech stocks and Bitcoin have been tumbling hard recently.
According to Hutchins, the reason for this is that investors have been selling their BTC to cover losses in other elements of their crypto investments.
Similarly, he continued, tech stocks (Nasdaq 100) have been declining as individuals want liquidity, so they sell them while still believing they are good investments.
The collapse of the Terra chain, whose native token LUNA fell from $115 to far below zero, and the UST stablecoin lost its USD peg, are among the main reasons for the crypto market’s decline, lead by Bitcoin.
LUNA’s community has voted to implement founder Do Kwon’s idea to split the chain at the present. Terra will start afresh with LUNA as its native coin, and the devastating blockchain will be called Luna Classic (with the token LUNC). On the new Terra chain, the UST stablecoin will not be revived.
Bitcoin Price Action
Bitcoin is currently trading near the $29,800 mark, which also happens to be the 100 hourly simple moving average. The upward rise from the $28,635 swing low to $30,188 high has already been tested at the 50 percent Fib retracement level.
Near the $29,950 mark, there is immediate upside resistance. On the hourly chart of the BTC/USD pair, a key negative trend line is forming with resistance near $29,950. The next significant resistance level is at $30,180.
If bitcoin fails to break through the $30,180 barrier zone, it may fall further. Near the $29,400 level, there is the immediate support on the downside.
The $29,250 level is the first important support. It’s close to the 61.8 percent Fib retracement level of the upward advance from the swing low of $28,635 to the high of $30,188. A breach below the $29,250 support on the downside might drive the stock much lower. The major support level is still at $28,500.