Cryptocurrency trades over $44,000 amid rumors of a BTC purchase by Fundación Terra

According to one observer, Terra is becoming a regular buyer of bitcoin.

An observer reported that Terra is increasingly buying bitcoin.
An observer reported that Terra is increasingly buying bitcoin.

Bitcoin (BTC) is still gaining ground, despite unsubstantiated rumors that a foundation centered on UST, the world’s fourth-largest stablecoin, is stockpiling the top cryptocurrency as a reserve asset.
According to CoinDesk statistics, bitcoin reached three-week highs of moreover $44,000 early Friday. Since the United States Federal Reserve (Fed) boosted borrowing prices by 25 basis points on March 16, the cryptocurrency has gained more than 10%.
According to reports, the Singapore-based nonprofit Luna Foundation Guard (LFG) purchased bitcoin worth $125 million (2,840 BTC at the current price) earlier this week, fulfilling a month-old promise to add BTC as an additional layer of security for UST – Terra’s decentralized dollar-pegged stablecoin.

As CoinDesk’s Christine Lee noticed on Thursday, tether (USDT) worth $125 million was recently transferred from a Gnosis safe address supposedly owned by Terra, perhaps indicating the acquisition.
The foundation has been a consistent bitcoin buyer, according to Anthony Pompliano, a famous crypto advocate and partner at Morgan Creek Digital. “They are gradually buying $3 billion in bitcoin from the Luna Foundation’s reserves. This is accomplished by aggressive buying on price drops “Pompliano mentioned this in a blog post on Monday.
According to Duo Nine, a pseudonymous market analyst, and Anchor Protocol user who goes by the Twitter handle @DU09BTC, LFG has amassed 18,000 bitcoin valued moreover $800 million.

The official confirmation of the aforementioned purchases is still pending. Last month, the foundation declared its intention to create a $1 billion bitcoin reserve. Do Kwon, Terraform Labs’ founder and CEO, has stated that the foundation intends to raise its reserves to $3 billion, with a long-term objective of generating a $10 billion fund.
While the extent of the foundation’s latest acquisitions is yet unknown, the conjecture, along with the post-Fed rise in stocks, looks to bode well for bitcoin.

“[There are] solid buy-in crypto markets fueled by enthusiasm about institutional engagement, growing ETH merge story, and (unconfirmed) a $125 million BTC purchase by Luna Foundation Guard,” Ilan Solot, a partner at the Tagus Capital Multi-Strategy Fund, said in an email earlier this week.
Analysts remain optimistic about the near-term prospects. “As BTC approaches the highs of 2022, we are now approaching the top band of resistance. With the recent spot flow, we are cautiously optimistic about a continuation of the medium-term rise and a run to $50,000 “Stack Funds’ chief operating officer and co-founder, Matthew Dibb, stated.

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