- 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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.