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