Bitcoin price continues to gain traction amid unconfirmed rumors suggesting that a platform focused on UST, the world’s fourth-largest stablecoin, is hoarding bitcoin as a reserve asset.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin hit a three-week high above $44,000 early Friday. Cryptocurrencies have gained more than 10% since the US Federal Reserve (Fed) raised borrowing costs by 25 basis points on March 16.
Singapore-based nonprofit Luna Foundation Guard (LFG) is rumored to have purchased $125 million worth of bitcoin (2,840 BTC at current prices) earlier this week, fulfilling a promise from a month about adding BTC as an extra layer of security to UST, Terra’s dollar-pegged decentralized stablecoin.
Recently, around $125 million worth of stablecoin Tether (USDT) was moved from a secure Gnosis address believed to be owned by Terra, presumably as proof of the sale. Data tracked by Glassnode shows that the number of coins held on centralized exchanges has dropped to 2,506,635 BTC, the lowest since September 2018. More than 7,000 coins have left exchanges in the past year less than a week, bringing bullish signs to the market.
Bitcoin is trading near $44,399 at publishing this article, up 1.10% on the day.