- 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
Dogecoin and Bitcoin Cash Price Prediction: Funding rates decrease indicate weakness in DOGE and BCH
Dogecoin and Bitcoin Cash registered 3% and 8% losses on Tuesday following increased selling pressure from the futures market. The decline comes amid large-cap cryptos like Bitcoin, Ether and XRP, holding still with slight gains.
XRP could sustain rally amid growing ETF and SEC vote prospects
Ripple flaunted a bullish outlook, trading at $2.1505 on Tuesday. Investor risk appetite has continued to grow since the middle of last week, propping XRP for a sustainable upward move triggered by the swift decision by US President Donald Trump to suspend reciprocal tariffs for 90 days.
VeChain Price Forecast: VET bulls aim for a double-digit rally
VeChain price hovers around $0.023 on Tuesday after breaking above a falling wedge pattern the previous day; a breakout of this pattern favors the bulls. Bybit announced on Monday that VET would be listed on its exchange. Moreover, the technical outlook suggests rallying ahead, targeting double-digit gains.
Dogecoin, Shiba Inu and Fartcoin price prediction if Bitcoin crosses $100K this week
The meme coin market fell sharply on Monday, shedding 4.8% in market capitalization to settle at $49.25 billion, according to data compiled from CoinGecko. The sell-off coincided with increased volatility across broader crypto markets while investors rotated funds into Bitcoin briefly tested $85,000.
Bitcoin Weekly Forecast: Market uncertainty lingers, Trump’s 90-day tariff pause sparks modest recovery
Bitcoin (BTC) price extends recovery to around $82,500 on Friday after dumping to a new year-to-date low of $74,508 to start the week. Market uncertainty remains high, leading to a massive shakeout, with total liquidations hitting $2.18 billion across crypto markets.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.