Terra contagion will crash Bitcoin to $10K, Ether to $300 in 2022 — analyst

Key Takeaways:

  • The crypto market bleeds in the wake of Terra implosion.
  • Bitcoin whales took the hint and started accumulating.
  • BTC and Ethereum each lost double digits, and could lose more.
Terra contagion, Terra contagion will crash Bitcoin to $10K, Ether to $300 in 2022 — analyst
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YEREVAN (CoinChapter.com) – Terra, the infamous stablecoin issuance platform, imploded in mid-May, costing investors roughly $45 billion in lost assets.

However, experts suggest that the blast wave from the Terra contagion will hit all major cryptocurrencies, sending Bitcoin (BTC) to $10,000-15,000, and Ethereum (ETH) to $300-500.

Andrew Kang, a crypto investor and the co-founder of Mechanism Capital, shared his estimations on June 16, citing earlier predictions.

Also read: Bitcoin (BTC) rally fizzles out after Fed’s 0.75% rate hike bomb — dangerous times ahead.

“Terra contagion could result in $500B+ of wealth wipe out via short and long term knock-on effects” – mentioned the expert in May, and urged traders to prepare for the “rainy day.” However, the price drop prompted some whales to restart accumulation.

Bitcoin whales on the move after Terra contagion

The largest non-exchange Bitcoin whale stockpiled another $21 million in BTC, buying up 927 coins during June 2022. According to BitInfoCharts, the whale address purchased 300 BTC on June 7, sold 500 BTC on June 9, and bought another 425 BTC on June 13, 488 BTC on June 14, and 214 BTC on June 15.

Moreover, crypto analytical platform Santiment noted that whale accumulation spiked when the flagship crypto reached $22,000.

Whale accumulation in progress. Source: Santiment.com
Whale accumulation is in progress. Source: Santiment.com

Also read: Bitcoin exchange inflow jumps highest since 2018 — BTC price reaches $20k.

Moreover, it is customary for little fish to follow the whales, as they dictate the market-wide trend. Thus, the retail investors piled on as well, ensuring a hefty spike in the trading volumes on June 15. However, it is unclear if the heightened accumulation rate can save Bitcoin and Ethereum from a downfall.

Bitcoin and Ethereum lose over 30 and 50%, respectively

Bitcoin and Ethereum have bled double digits since the Terra implosion, backing Andrew Kang’s gloomy forecast. Moreover, with bearish headwinds from the fiat economy, dig a deeper hole for the crypto market.

As a result, BTC/USD stood at just above $21,000 in the Asian-Pacific session on June 17. In addition, the pair confirmed the Bear Flag formation, active since mid-May, and used the target price level as support in the previous three days.

Bitcoin (BTC) daily proce chart, featuring a Bear Flag. Source: TradingView.com
Bitcoin (BTC) daily price chart featuring a Bear Flag. Source: TradingView.com

Also read: Over 7.5M failed transactions recorded on Ethereum blockchain in June.

Similarly, Ethereum slashed its price in half since Terra collapsed. As a result, the ETH price stood at nearly $1,100 in the Asian-Pacific session. Ether also met its previous target, retesting the said line as support.

Ethereum (ETH) daily price chart, featuring a pennant formation. Source: TradingView.ocm
Ethereum (ETH) daily price chart, featuring a pennant formation. Source: TradingView.com

Also read: Ethereum plunges below $950 on Uniswap as global crypto market bleeds

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