The cryptocurrency Bitcoin recently achieved a new all-time high, reaching a value of $69,990. Concurrently, Bitcoin futures briefly exceeded the $70,000 mark before Bitcoin’s price corrected to below $67,000. Ethereum futures also saw a notable increase, hitting $4,003 amidst these market fluctuations. This period of intense trading activity coincided with market-shaking news.
Market Reacts to THORChain’s Strategic Token Burn
THORChain, a decentralized liquidity protocol, announced a substantial burn of 60 million RUNE tokens from its reserves. This move was aimed at paving the way for collateral loans by freeing up space equivalent to $140 million, allowing for the possibility of securing around 2000 Bitcoins or 36,000 ETH without the need for liquidation or interest. The token burn sparked immediate interest as such events often lead to a scarcity-driven price surge, and RUNE’s price reacted accordingly.
RUNE Responds with Volatile Price Action
Following the token burn announcement, RUNE’s price rocketed by over 20%, climbing from $7.18 to surpass $7.5 within a matter of minutes. However, as Bitcoin’s price retreated, RUNE also experienced a slight pullback to approximately $7.3. Despite a week-on-week increase of 28%, RUNE’s performance still lagged behind other cryptocurrencies which boasted gains of 50-60%. Over the past month, RUNE’s valuation rose by more than 50%, expanding the project’s market capitalization to $2.49 billion and sparking a 128% surge in trading volume.
The trading frenzy has thrown the market into a state of unpredictability, as evidenced by RUNE’s Relative Strength Index (RSI) hovering around 40, a level indicating overselling. This suggests that despite the bullish news and subsequent price hike, sellers continue to exert significant influence over the market.