The Luna Foundation Guard has purchased $1.5 billion in bitcoin to boost the reserves of its most popular stablecoin, UST. Stablecoins are digital currencies whose market value is tied to a more stable asset. The Luna Foundation Guard is getting closer to its goal of amassing $10 billion in bitcoin to support the Terra stablecoin, or UST.
Do Kwon, co-founder, and CEO of Terraform Labs, the company that created the Terra blockchain, predicted that the $10 billion goals be met by the end of the third quarter.
The UST Reserve now has nearly $3.5 billion in bitcoin, making it one of the top ten bitcoin holders. It also holds north of $100 million in Avalanche, another cryptocurrency.
Bitcoin and Altcoins pared off the gains accumulated in the prior day as the cryptocurrency market succumbed to yet another widespread selling pressure. Bitcoin price saw a huge drop as it slid to lows of $35,595 in a matter of hours.
Terra Cofounder, Do Kwon says ”Worry not about Bitcoin, it is fungible freedom to counter fungible state violence in fiat. And its rise will be inevitable as long as humanity yearns to be free”
Meanwhile, renowned trader Peter Brandt, who made a name for himself in the crypto industry by correctly predicting some of bitcoin’s greatest moves, including its 80% drop in 2018, warns crypto investors of a dot-com-style catastrophe. As a result, Brandt believes bitcoin is due for a severe correction, with the price dropping to $27,000 in the near future.
The stock market and key cryptos are highly correlated. They also have a high stock beta. As a result, crypto effectively magnifies stock movements. This association, according to William Clemente, a crypto analyst is only temporary. Bitcoin’s price will diverge from riskier tech equities as it matures. He believes stocks and bitcoin will “split up” in the next year.
According to a crypto analyst, Ali Martinez, Bitcoin risks a trip to $28,500 as ‘’Data shows that Bitcoin broke through a crucial support level at $38,670 where 2 million addresses hold over 1 million $BTC. BTC needs to reclaim $38,670 as support quickly to avoid these addresses from selling some of their holdings as the next key support sits at $28,500’’.
On the contrary, a panel of cryptocurrency experts predicts that the price of bitcoin will reach nearly $82,000 in 2022 before dropping to just above $65,000 by the end of the year—but warns that a more advanced blockchain like ethereum, BNB, XRP, Solana, Cardano, luna, or avalanche could eventually eclipse bitcoin.
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