Bitcoin (BTC) price dropped below the $31,000 levels and hit its lowest level this year. While the fall in the BTC price has affected the entire crypto money market, major altcoins such as Ethereum (ETH), Shiba Inu (SHIB) and Dogecoin (DOGE) continue to suffer huge losses. As Kriptokoin.com, we are transferring the details.
Investors worried about Bitcoin price drop
About $1.4 billion worth of Bitcoin (BTC) from a wallet affiliated with the Luna Foundation Guard (LFG) on Monday reportedly moved. On a day where the Bitcoin price has dropped by more than 11 percent, investors are worried about how long the drop will continue. In a statement made by Blockchain research firm Blockchain, it was reported that 42,530.82827771 BTC was spent from the LFG wallet, although the target is unknown. The funds are estimated to be split into approximately 12,500 BTC and 30,000 BTC. Some of it was reportedly sent to cryptocurrency exchange OKEX.
it just confirmed. not sure where its getting sent though…
Can anyone help us out thats an on chain king? wheres this btc going? pic.twitter.com/vqKk4ukQWG
— Daxx (@DaxxTrader) May 9, 2022
Whale Alert, which provides tracking and analytics with reporting on major Bitcoin transactions , in a statement on his Twitter account, announced that 12,531 BTC was transferred from an unknown wallet to another unknown wallet. Interestingly, the BTC transfers came shortly after LFG announced that it had taken decisive steps to “proactively defend the stability of the UST and the wider Terra economy,” citing the popular algorithmic stablecoin TerraUSD. To help protect the UST, the measures included lending $750 million worth of UST to exchanges to accumulate more Bitcoin as market conditions begin to stabilize.
UST fell as low as $0.9428 on Monday, according to data from CoinMarketCap.
Terra (LUNA) value also dropped significantly over the weekend, but project co-founder Do Kwon warned that the sale was the result of a coordinated attack against the protocol. He also revealed on Sunday that LFG is not “trying to exit the Bitcoin position” but has put it as capital in the hands of a professional market maker to buy UST if the price drops and buy BTC if the price is greater or equal. Kwon also said more capital would be deployed, but did not specify to what extent.
1/ The LFG Council just voted to deploy 1.5B in capital (0.75B in BTC, 0.75B in UST) to allay market concerns around UST. Some more context on why and how: https://t.co/TfaAPkzgUJ
— Do Kwon 🌕 (@stablekwon) May 9, 2022
Extreme market volatility caused LFG’s truce with Genesis Trading last week and It follows the $1.5 billion purchase of Bitcoin completed through direct purchases and swaps from crypto venture fund Three Arrows Capital. At the time, the nonprofit was said to hold around $3.5 billion worth of BTC at an average price of $37,100 per coin. While Bitcoin continues to trade at $31,361.68 now, SHIB continues to trade at $0.00001536 with a decrease of 18 percent, Ethereum at $ 2,308.11 with a decrease of about 9.5 percent, and DOGE at $0.1095 with a decrease of about 13 percent.
