Terra Purchases $176M in Bitcoin but BTC Continues to Dip

Terra Purchases $176M in Bitcoin but BTC Continues to Dip

Terra just bought $176m in Bitcoin today. Luna Foundation is committed to its goal of purchasing $10 billion worth of Bitcoin. Therefore, it became the second biggest holder of bitcoins after Satoshi Nakamoto.

Terra is Sticking to its $10 Billion Goal

The Luna Foundation has purchased an additional 4,130 bitcoins, bringing its holdings to 39,897.98 BTC. Luna Foundation last added BTC to its holdings on April 6. The purchase of Bitcoin on April 6 amounts to around $1.7 billion at the current price of the digital commodity, which is $42,700.

The Luna Foundation still has to buy an extra $8.3 billion worth of BTC to reach its previous goal of holding $10 billion. The move will also make it the second-largest Bitcoin holder behind Satoshi Nakamoto.

The Terra (LUNA) network and the Luna Foundation Guard (LFG), a Singapore-based non-profit, continue to stack bitcoin. LFG held 30,727.97 BTC less than a week ago. Using BTC exchange rates from six days ago, the cache was worth over $1.4 billion at the time. The LFG bitcoin stash received no new deposits for around six days.

The LFG bitcoin wallet received 2,485 BTC at 6:57 a.m. (UTC) on April 6 and continued to accept payments until it added 5,040 BTC. LFG’s bitcoin wallet gets dust transactions sent to it should not be overlooked, as it is a common occurrence for well-known wallets with significant amounts of bitcoin.

Institutional Adoption is Picking

Six days back, the wallet was ranked 29th in size. The LFG bitcoin wallet needs more than 7,135 BTC to beat Tesla’s bitcoin balance sheet. Despite this, LFG’s bitcoin wallet is greater than the BTC treasury of every other publicly traded business except Tesla and Microstrategy.

LFG’s wallet is worth half of the $3 billion BTC Terra’s inventor Do Kwon predicted the project would buy in March. The initiative was able to acquire BTC even though the price of bitcoin had declined by 3.9 percent in the previous 24 hours.

On Wednesday, Bitcoin’s USD value fell to $43,388 on the Bitstamp platform. The acquisition of 5,040 BTC by LFG followed the purchase of 4,167 bitcoins by Microstrategy. The purchase by Microstrategy on Tuesday increased the company’s balance to 129,218 bitcoins.

Terra Eyes Stablecoin Dominance

Do Kwon, the founder of Terra, has stated that he aims to make UST the most popular stable coin. To achieve this, the Terra community has been acquiring Bitcoin. It has led to an increase in the popularity of both UST and LUNA.

The goal is not to be the largest stable coin on the Terra blockchain but to be everywhere. In a recent interview, Do states that he wants to make Terra accessible to everyone. UST is the biggest stablecoin that uses a mix of tokenomics and reserves. Its goal is to accumulate $10 billion worth of BTC. This move would benefit both UST and LUNA, as it ensures that the network has enough liquidity. 

Bitcoin’s Price is Holding the $42K Level

The Luna Foundation’s acquisition of 4,130 Bitcoin did not elicit a knee-jerk reaction in the crypto markets in terms of price action. The King of Crypto is stabilizing above the critical $42,00 support at writing. It also crosses the 50-day (white) and 100-day (yellow) moving averages.

The MFI and RSI are both in the neutral area on the daily BTC/USDT chart, with readings of 32 and 47, respectively. The daily MACD, on the other hand, suggests that the $42k support zone is under threat of breakdown.

If Bitcoin fails to hold onto this level at the close of the weekly trading session, it could fall to $40k or even $39k. If $42k persists, Bitcoin may try to break through the $48k resistance zone, which corresponds to the location of the 200-day moving average (green). If you can break $48k, you may be looking at $50k or possibly more in the coming days.

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Wayne Jones

Wayne is an all-rounded cryptocurrency writer who has written for several publications in the fintech industry. Having graduated from the University of Essex Colchester, he developed a passion for blockchain technology and has been curious about how the blockchain can modify the traditional financial industry.