Bitcoin Holds Steady as Luna Foundation Guard Resumes Purchases – CoinDesk

LFG has purchased 5,773 BTC, worth $272 million, this week, the foundation’s confirmed bitcoin address showed at 09:42 UTC .

“Last week, LFG sent $125 million worth of USDT across all weekdays and $160 million on Saturday to Jump Trading, who executed the BTC trades quickly thereafter.” USDT is the symbol for tether, the world’s largest stablecoin by market value.

LFG announced last month that it had raised $1 billion through an over-the-counter sale of LUNA, the native token of the Terra blockchain, to build a bitcoin-denominated reserve as an additional layer of security for Terra’s decentralized dollar-pegged stablecoin UST, the fourth-largest stablecoin.

“The reserve will help maintain a UST peg to the dollar during downward peg deviations,” Lunde told CoinDesk in a Telegram chat.

The foundation’s Ethereum address now has stablecoins worth $848 million, which can be used to fund further BTC purchases.

“If LFG continues to buy at a similar rate as last week and the $800 million is not converted, LFG will finalize building the BTC reserve on April 6.

The implication is that, at least for the short term, the path of least resistance for bitcoin appears to be on the higher side.

According to Arcane Research, LFG’s purchases probably contributed to lifting the market and the foundation’s activity must be closely tracked in coming days.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies.

As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period.

…Read the full story