Bitcoin’s volatility has been a concern to many. Time and again, individuals have complained about how the asset surges and dips due to announcements and massive sales or purchases.
But this time it was notably different. The Luna Foundation Guard [LFG] has been on a BTC buying spree. The Singapore entity intends to set up a stablecoin that is backed by BTC. As a result, it was seen bagging significant amounts of cryptocurrency.
More recently, LFG pocketed a few more Bitcoins as the world’s largest cryptocurrency endured a slump. Currently, the total holdings of the platform soared to a high of 42,406.92 BTC following its recent purchase of 2508.94 BTC. Thanks to this addition, LFG is now the 19th largest Bitcoin holding address.
Luna was really taking a leaf out of Ethereum’s books here. The Ethereum ecosystem paved the way for DAI a stablecoin backed by ETH. Now, Luna seemed to be bringing a similar notion into the BTC network.
Bitcoin wasn’t the only asset that LFG was eyeing. Following a massive purchase of $230 million in Bitcoin, earlier this month, LFG bagged $200 million worth of AVAX as well. Just over the last weekend, the foundation bagged another $173 million in BTC. Despite this increased buying activity, the king coin doesn’t seem to be budging in terms of price.
Bitcoin struggling to break the $40k tie?
The crypto market was painted in volatility over the last couple of weeks. After Bitcoin’s rise to $48k, the asset witnessed a massive drop. This was quite surprising as historic data says otherwise. While Tesla had a huge impact on the price of BTC, Luna clearly did not. Several in the community speculated that the reason behind this could be the popularity of Luna. While the platform has a strong presence in the crypto-verse, it still isn’t as popular as Tesla or Microstrategy. Hence, individuals are unlikely to be driven to purchase Bitcoin.
Regulators cannot be overlooked either. Stablecoins, Bitcoin, and the crypto-verse, in general, are being heavily scrutinized. Lawmakers from across the globe have been inhibiting fear among investors. As a result, both, institutional and retail investors seem to be sitting on the sidelines.
Additionally, during press time, BTC was trading for $39,993 with no major price changes over the last couple of hours.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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