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Here's Why Bitcoin Went Down So Much: North Island Chairman

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Wed, 05/25/2022 - 14:48
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Yuri Molchan
Glenn Hutchins has shared likely reason for fall of Bitcoin and stocks of major tech companies
Here's Why Bitcoin Went Down So Much: North Island Chairman
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Chairman of North Island Glenn Hutchins has spoken to CNBC, offering them one of the reasons why major tech stocks and Bitcoin have been falling hard recently.

Hutchins reckons that the reason is that investors have been getting rid of their BTC in order to compensate for their losses in other aspects of their crypto investments.

Similarly, tech stocks (Nasdaq 100) have been falling, he said, as people are in need of liquidity, so they sell them, while still considering them to be good assets.

Among other reasons for the crypto market fall, led by Bitcoin, is the collapse of the Terra chain, when its native token LUNA dropped from $115 to well below zero, and the UST stablecoin lost its USD peg.

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At the moment, the LUNA community has voted to implement founder Do Kwon's proposal to split the chain. The battered blockchain will be renamed Luna Classic (with the token LUNC), and Terra will start over like new with LUNA being its native coin. The UST stablecoin will not be resurrected on the new Terra chain.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.