The market price of bitcoin stayed pretty much flat for most of the first week in April. But as the U.S. Federal Reserve signaled higher and faster interest rate hikes, and quantitative tightening of its $9 trillion balance sheet, the general market took a turn downwards, and bitcoin (BTC) went down with it as the premier cryptocurrency by market cap has a hard time getting away from the correlation with the S&P 500.
In the early hours of Friday, April 8th, bitcoin tumbled well below $43,000 but has since recovered to levels before the Fed’s announcement and the release of Fed’s meeting minutes from Wednesday’s FOMC meeting.
The trend for the past month, however, has been led by Terra’s announcement that their UST stablecoin will eventually be backed by bitcoin at a value of $100 billion. To that point, Terre has been buying bitcoin at a rate of 26,000 BTC for the past 30 days, assumingly putting a heavy buying pressure on bitcoin, and consequently driving up the price.
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