Bitcoin price rebounds after Terra’s LUNA Foundation Guard buys over $100 million in BTC
|- The LUNA Foundation Guard bought over $100 million in Bitcoin, their total balance is 42,406 BTC.
- LUNA Foundation Guard’s sustained acquisition of Bitcoin has fueled a bullish outlook among investors.
- Analysts believe Bitcoin’s correlation with US stocks pushed BTC price higher as inflation increased.
Bitcoin price has historically increased with rising inflation, as the Consumer Price Index hit its highest point since 1981, BTC started its recovery. LFG’s consistent Bitcoin purchase has fueled a rally in the asset.
Bitcoin price recovers from recent correction
Bitcoin price’s correlation with US tech stocks remains high, and the asset recovered from its recent correction as the Consumer Price Index (CPI) hit a high. Since Bitcoin has typically been considered as a hedge against inflation, rising CPI is followed by a spike in BTC price.
CPI is a measure of the average change overtime, in prices paid by urban consumers for a basket of consumer goods and services.
US CPI has hit its highest level since 1981. Typically, a spike in inflation fuels a rally in Bitcoin price. Bitcoin witnessed a recovery and made a comeback above $40,500.
CPI hit an 8.5% level, and the director of digital assets strategy at VanEck believes this implies inflation is already in double-digits. This is the highest increase in four decades, indicating a rise in inflationary pressures and a bullish outlook among Bitcoin investors.
Another key driving force behind the ongoing Bitcoin price recovery is LUNA Foundation Guard (LFG)’s consistent buying and accumulation of BTC. LFG’s total balance is 42,406 BTC, and the foundation made a recent purchase of $100 million in Bitcoin.
Though LFG’s BTC accumulation had no significant impact on LUNA price, it has fueled the demand for Bitcoin and influenced price positively.
Analysts have evaluated the Bitcoin price trend and predicted a climb to $50,000. Analysts identified a bullish setup in the Bitcoin price chart and believe the asset is on track to break the psychological barrier at $50,000. Analysts believe the chart indicates that the downside for Bitcoin price is capped at $29,000.
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