Conscious or not, Luna Foundation Group (LFG) already has a large amount of Bitcoin (BTC) reserves worth $ 1.72 billion, 700 BTC less when compared to Tesla’s ownership.
It was previously informed that the existence of BTC reserves is to support Terra stablecoin, UST.
If observed closely, there is no denying that the accumulation of Bitcoin by LFG has had a positive impact on the price of this crypto king.
But the question is, to what extent is it capable of triggering the BTC price spike?
Data from crypto analysis firm, IntoTheBlock revealed that LFG's activity only contributed slightly to the increase in BTC prices even though in a month they had managed to buy over 40,000 BTC.
Here are the details:
The average $ 67 million daily inflow into Terra reserves represents only 0.27% of bitcoin’s daily volume.
Terra’s largest purchase of bitcoin - $ 223 million on April 6 accounted for just 0.88% of the day’s trading volume, proving Terra’s influence in the market is still far away.
These two observations already explain the price of bitcoin over the last week of March being driven by game whales like Terra who prefer to accumulate those assets rather than actual purchases - the trigger to a price spike.
In support of the above statement, look at the last 3 months when the bitcoin balance still stored in wallets amounting to 1,000 to 10,000 BTC has dropped to its lowest level.
This group of whales owns over 1/4 of the total supply of bitcoin, and this shows they are the real market movers.
At the same time, the whales are lonely but the group that has more than 100 BTC is acting to liquidate their assets.
Their holdings are seen shifting to the wallet that has the smallest amount of BTC (0.001 BTC - 0.01 BTC) and shows rapid growth since last month.
If previously big investors only had to worry about rumors from the Federal Reserve and the microeconomic situation, now they are focusing on the movement of LFGs that buy BTC continuously to achieve the $ 10 billion BTC mission.
The crypto market today recorded a decline with BTC prices declining since the weekend.
Some think bearish sentiment will continue until the second quarter of 2022, and some also think bullish will not happen until 2024.
