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Long-Term BTC Holders Are Suffering; Tether Launches Peso-Backed Stablecoin

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On Thursday, the broader crypto market suffered yet another dip despite U.S. stocks experiencing a rally on the back of bolstered retail confidence. BTC plunged further to test the support levels near the $27k to $28.5k region, and even formed a new low at the $27.5k mark on Thursday morning (Asian trading hours). Thankfully, and as of the time of writing, the number one cryptocurrency by market cap has since inched back to trade above the $28.5k support level. However, the short-term upside gains for BTC are limited by the immediate overhead resistance that is sitting near the $29.6k level. Meanwhile, long-term BTC holders are bleeding profusely from their positions. The SOPR for long-term holders has dropped below 1 for the first time in two years, and is fast approaching levels last seen during the liquidity crunch in March of 2020. 

Moving away from BTC, ETH has unfortunately taken a nosedive to the $1,700 handle after shedding nearly 10% of its market value from 24 hours ago. This huge price fluctuation was triggered by the fact that ETH options with a notional value of over $1 billion had approached expiry. As of the time of writing, the negative gamma exposure of ETH has plunged to its lowest levels yet, indicating that strong selling pressure has now come to grip the market. Most major altcoins are also deep in the red, with AVAX leading the plunge on a double-digit percentage drop from 24 hours ago.

Talk of the Town

Tether has kickstarted its foray into the Latin American market with the launch of MXNT, a new type of stablecoin that is backed by the peso, Mexico's national currency. In the initial phase, MXNT will be available on three main blockchains, namely Ethereum, Tron, and Polygon. According to Tether's CTO, a peso-pegged stablecoin will "provide a store of value" and will seek to "minimize volatility" for those who wish to convert their assets from fiat to digital currencies in the emerging markets. 

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