Things may not be going as planned for bulls, as Bitcoin continues to decline, falling below $40k for the first time in about four weeks, but Terra doesn’t seem to be weighed down and they are still filling their bags.
Early Wednesday, the Luna Foundation Guard (LFG) purchased another 2508 Bitcoin, raising its total stash to 42406.92 BTC, or over $1.7 billion at current prices.
Since its setup, the wallet has seen a total of 68 transactions or deposits, but no bitcoin has been moved out. According to Bitref’s blockchain explorer statistics, the first balance change occurred two months ago.
Despite positive signals such as new Terra buy-ins over the weekend, Bitcoin began the week on a downward path, losing the $42,000 mark, which has functioned as both support and resistance for the cryptocurrency since November 2021.
Investors are weighing the risks of rising interest rates and soaring inflation with the US CPI report for March coming in at 8.5 percent, a 40-year high. The Bitcoin price eventually fell below $40,000 on Monday for the first time since March 16 as investors weigh the risks of rising interest rates and soaring inflation.
Terra, on the other hand, is unfazed by the continued plunge, as they continue to stack sats to establish a reserve for Terra network stablecoin UST.
The Luna Foundation Guard announced that it had raised $1 billion from crypto-focused venture investors in February for the purpose of building a Bitcoin reserve for Terra’s UST stablecoin. Terra’s LUNA tokens were privately sold to raise funds.
The LUNA Foundation Guard (LFG) plans to grow its Bitcoin reserves to $3 billion, with a long-term goal of increasing the pool to $10 billion, which might lead to a surge in UST demand.