Crypto Market Jitters as Litecoin Skyrocketed Shorty Before Fall on Rumor
Litecoin pulled down BTC along as short term investors dump holdings; some experts see this as market consolidation
Bitcoin (BTC) plunged as low as $44,000 last night as the market reacted sharply to an “illegitimate press release” by GlobeNewswire that referenced Litecoin’s partnership with Walmart. Litecoin in a matter of an hour skyrocketed by 33% before plunging back sharply to its initial level.
Walmart spokesperson later confirmed in a press release the news is inaccurate and Walmart has no partnership with Litecoin to accept it as a payment solution.
Price of BTC steadily climbed back to its resistance level of $45,800. Meanwhile, business software company Microstrategy announced earlier on Monday it has accumulated additional 5,050 BTC totaling its holding to 114,042 BTC with market valuation of $3.16 billion at an average price of $27,713/BTC as reported by Coindesk.
However, long-term holders of bitcoin shrugged off temporary volatility due to sell off in the recent weeks. Glassnode blog post states, large accumulation of BTC occurred between $29,000 and $50,000. They further noted last week’s sell off was due to dumping of excessive leverage in the futures market.
The post further states long-term holder’s owned 79.5% of all BTC coins in circulation which is at the same level as the level reached in last October prior to the kickoff of the bull run.
According to CryptoQuant blockchain data shows short term investors are selling at loss which could be translated as the indication for next bull run, CryptoQuant states in a blog post.
Despite all tantrums in the market, last week’s inflow of digital asset investment products totaled $57 million, as stated in a weekly report by Coinshares. Last week, Solana rose 24% week-on-week, outperforming top 10 digital currencies by 34%. However, inflow of BTC remained flat with inflow of $0.2 million and Ethereum $6.3 million.