Rumor has it that Terra is about to buy another $3 billion BTC, Bitcoin price immediately up to above $43,000

By Selena On Mar 22, 2022

Against the background of a sluggish price action following the news that the Fed raised interest rates last week, Bitcoin price unexpectedly surged to $43,000 thanks to a rather unexpected factor. At the time of writing, BTC is changing hands at $42,017.

BTC/USD 4-hour chart | Source: TradingView

Bitcoin price immediately rises above $43,000

According to Glassnode on the weekly activity of the Bitcoin network, Bitcoin price has remained steady within the same tight $5,000 swinging range of $37,780 to $42,312. However, on March 22, BTC unexpectedly recorded a sudden surge and lifted the price to a two-week high at $43,390.

The reason behind this pump is most likely due to the fact that the founder of Terra Do Kwon, has hinted at continuing to spend an additional $3 billion to buy Bitcoin in the future to provide Terra’s reserves for a short period of time. A recent discussion was shared with my Twitter account Udi Wertheimer.

Accordingly, Do Kwon explains the new mechanism that the Terra ecosystem is introducing to use BTC as collateral for its flagship decentralized stablecoin UST.

#terra is about to buy $3 billion dollar worth of #bitcoin imminently

to use it as a reserve asset

if you’re a bitcoiner you need to listen to this recording to catch up

you won’t find this info on the timeline of your favorite maxi https://t.co/38837QBs8S

— udiverse🔺 (@udiWertheimer) March 22, 2022

Kwon said that with the integration with Bitcoin, UST will become a hybrid stablecoin, allowing the exchange of $1 worth of UST for $0.99 worth of BTC. This will effectively allow BTC interoperability using UST with a premium of 1%, roughly the same way LUNA is being used right now. Kwon made it clear that these mechanisms will be presented in more detail in the future. When asked why Terra chose Bitcoin as a reserve asset.

contexthttps://t.co/5AK5IGzBai

— Sisyphus (@0xSisyphus) March 22, 2022

Hidden point to todays narrative about this $3b from $LUNA

9 minutes after they execute their first on-chain xfer of $125 million at 0:44 UTC, a VERY aggressive buyer shows up on Coinbase at 0:53 UTC, purchasing ~500btc with these limit orders.

Someone was watching👀 pic.twitter.com/MglrlLm43V

— lowstrife (@lowstrife) March 22, 2022

On the other hand, the crypto community is actively “spreading” the evidence that Terra immediately purchased BTC after the announcement from the founder Do Kwon. This is indeed a very unexpected move because, in early March, Terra set up a fund of $1 billion for this goal.

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