Bitcoin falls to $36,000, dragging the market down with it

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The price of #BTC dropped by more than 9.4% over the day, causing a $325 million wave of liquidations in the futures markets. The drop in IT stocks has had a major impact on Bitcoin.

The Luna Foundation Guard is continuing to buy Bitcoin to promote its UST stablecoin. According to CNBC, LFG obtained cash on Thursday through a $1 billion OTC swap with cryptocurrency broker Genesis and a $500 million bitcoin acquisition from hedge fund Three Arrows Capital.

LFG purchased $100 million in Bitcoin in April. The UST stablecoin currently holds roughly $3.5 billion in bitcoin, making it one of the top ten bitcoin holders in the planet. The correlation coefficient between the price of Bitcoin and the S&P500 stock index has been continuously growing since September 2021.

According to a research by Arcane Research using data from CoinMetrics, and now stands at a record 0.7. The Fed meeting and a rate rise of no more than 0.5 percent initially boosted the stock market and cryptocurrency.

The S&P 500 jumped 4% on Wednesday, May 4, and Bitcoin is currently trading above $40,000. However, on the morning of May 5, following a 5% drop in the S&P 500, Bitcoin went past the $35,500 barrier. Fear and greed index remains at 32, indicating that investors’ expectations are gloomy.

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