The rises are due to Singapore-based Luna Foundation Guard (LFG), which bought $135 million worth of bitcoin on Monday, according to a recently published report from Bloomberg. Following these acquisitions, it has been confirmed that the address associated with the foundation is currently worth approximately $1.32 billion in bitcoins. As the Bitcoin and Terra blockchains are incompatible, the company must carry out a process of “wrapping” the BTC. Purchased BTCs are flipped onto the Terra blockchain and that way can be sent to the UST smart contract to back up your assets.
In the last hours, Do Kwon -CEO of Terra- confirmed that they have already acquired more than two billion dollars in bitcoin, which suggests that there is still a good way to go. In this way, it is expected that the rise of BTC will continue its course.
Terra’s initiative is something unprecedented in the crypto market, but many specialists expect it to be a trend that gains new followers in the near future. Crypto commentator Anthony Pompliano, in fact, noted in the last few hours that “all stablecoin issuers need to pay attention” to what Terra is doing. “Bitcoin is good for business,” added the expert.
Rumors about the purchase of the most traded token in the market by Terra as a reserve asset began to circulate last week. Speculation around the size of these purchases has pushed the price of the largest cryptocurrency higher, proving to be one of the main bullish catalysts. Therefore, many analysts point out that Terra is responsible for the rises that have led Bitcoin to mark a 2022 high of $48,000 on March 28.
The recent price rally saw Terra’s token net capitalization exceed $37.17 billion, now accounting for 1.76% of the entire cryptocurrency market, up from 0.39% earlier this year.
However, according to Cointelegraph, From a technical point of view, LUNA faces the possibility of a 50% price correction in the coming weeks, although this need not hurt the long-term bullish outlook. As a result, the price of LUNA could rise towards $425 in 2022.
Source: Ambito
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