Bitcoin remains looking for a move above the 200-day average as UST-focused nonprofit Luna Foundation Guard (LFG) resumed buying the largest cryptocurrency after having taken a break on Tuesday.
LFG purchased 5,773 BTC, worth $272 million, this week, the foundation’s confirmed bitcoin address showed at 09:42 UTC. Almost half was bought on Monday and the rest a few minutes before press time. Last week, it acquired around $125 million worth of BTC every weekday.
“The foundation had a commercial break after the big buy on Monday. She’s back today [snapped up 2,943 BTC] Arcane Research’s Vetle Lunde told CoinDesk in a Twitter chat. “Last week, LFG sent $125 million of USDT every weekday and $160 million on Saturday to Jump Trading, which executed BTC trades quickly thereafter. USDT is the symbol for tether, the world’s largest stablecoin by market value.
LFG announced last month that it had raised $1 billion through an over-the-counter sale of LUNA, the native token of the Terra blockchain, to build a bitcoin-denominated reserve as an additional layer of security for the decentralized stablecoin. pegged to Terra’s UST dollar. , the fourth largest stablecoin. The funding round was led by Jump Crypto and Three Arrows Capital.
The foundation increased the size of its bitcoin stash to $3 billion earlier this month and used Tether to purchase BTC. Tether helps users circumvent market volatility by maintaining a 1:1 parity with the US dollar.
“The reserve will help maintain a peg of the UST to the dollar during downside deviations,” Lunde told CoinDesk in a Telegram chat. The coin was able to retail the dollar peg by issuing and destroying LUNA tokens. For every UST created, $1 of Luna is burned on the Terra blockchain.
LFG has accumulated 30,728 BTC worth $1.45 billion, surpassing the original goal of $1 billion. The foundation’s ether address now has stablecoins worth $848 million, which can be used to fund further BTC purchases. He could get another $800 million by converting his UST holdings into tether.
Although there is no formula or frequency for executing purchases and no deadline for building up the reserve, the process would be completed within the next two weeks if LFG reverts to its previous purchasing pattern.
“If LFG continues to buy at a similar rate to last week and the $800 million is not converted, LFG will finalize the BTC reserve on April 6. Assuming a stable BTC price of $47,000 through April 6, LFG will have 48,800 BTC in its reserve when complete,” Lunde said in Tuesday’s blog post.
“If LFG also spends its UST reserves of $800 million in BTC, this process will be finalized around April 14, with another *~17,000 BTC added to the reserve, which will bring the reserves to 65,000 BTC,” Lunde added.
The implication is that, at least in the short term, the path of least resistance for bitcoin appears to be higher. Terraform Labs founder and CEO Do Kwon recently tweeted that LFG may eventually increase the size of the pool to $10 billion.
Bitcoin was last trading near $47,500, little changed on the day. The cryptocurrency rose nearly 13.5% last week, the largest one-week percentage increase since April 2021, according to data provided by charting platform TradingView. According to Arcane Research, the purchases of LFG have probably helped to recover the market and the activity of the foundation should be closely monitored in the coming days.
We would like to give thanks to the writer of this write-up for this awesome material
Bitcoin Holds Steady as Luna Foundation Guard Resumes Buying | Cryptocurrency
Our social media profiles here and other related pages herehttps://metfabtech.com/related-pages/