Commentators and the market are buzzing over a huge new BTC acquisition for Terra’s new US dollar stablecoin.
On March 22, Bitcoin (BTC) showed symptoms of still wanting higher levels, with Wall Street trade returning above $43,000.
Terra co-founder: “The vast majority” of the $3 billion is still un-purchased
BTC/USD was monitored by data from numerous analysts as it continued its newly confident stride to three-week highs.
The pair had already risen as a result of positive macroeconomic data from China, but it was news from within the country that really set the tone for the day.
Do Kwon, co-founder of Blockchain protocol Terra, announced his plans to back his new TerraUSD (UST) stablecoin with BTC in addition to Terra’s LUNA token in a Twitter Spaces debate with infamous Bitcoin critic Udi Wertheimer.
“Haven’t been following up with the specific amounts because transactions we normally do this over OTC,” he informed Wertheimer of Terra’s BTC acquisition intentions. “But the current clip that we have to acquire huge coin is about $3 billion and will add to that.”
“However, we haven’t purchased the majority of that 3 billion yet.”
As word spread, sleuths examined $125 million in Tether (USDT), which appeared to be linked to Terra, which was already on the move.
At current prices, a $3 billion buy would equal about 69,850 BTC. Terra would be the largest Bitcoin holder in the world, surpassing every corporate investor except MicroStrategy, which has 125,051 BTC in its wallet, according to data from the Bitcoin Treasuries monitoring service.
“I talked more than I shoulda,” Kwon admitted following the conversation over the weekend.
Meanwhile, Luke Martin, host of the WAGMI podcast, responded by claiming that the Terra’s were a “storey worth paying attention to.”
A $BTC narrative worth paying attention to:
>3 days ago @stablekwon shares plans to buy $3B in $BTC as a reserve asset in Udi's twitter space
>tweets "I said more than I shoulda"
>traders notice the first $125million has been moved
— Luke Martin (@VentureCoinist) March 22, 2022
Social media is oblivious to the sky-high BTC price expectations.
The attitude among Bitcoin dealers was so upbeat on March 22, despite the fact that full-fledged bullishness was still hard to come by after months of sluggish price activity.
If Bitcoin can hold those levels, I believe we’ll be in for a period of relief rallies throughout markets.
Meanwhile, Anbessa, a fellow trader, gave the BTC/USD immediate view based on a bullish or negative next reaction.
#Bitcoin Gameplan Update 💯✔️
Here we are $38,2k
Note how sentiment flipped bullish at resistance 🤝
Now both scenarios show the pullback, red scenario would be another retest of the breakout & H&S downside target. Only if support fails here. pic.twitter.com/N48syRQab8
— AN₿ESSA (@Anbessa100) March 7, 2022
Earlier, several media outlets reported on the surge to above $43,300, resulting in the liquidation of a large number of short positions.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.