- 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.
Follow us on Telegram
Stay updated of all the news
Ethereum whales turn bullish with Shanghai upgrade less than a month away
Ethereum (ETH) whales holding between 1,000 and 10,000 ETH have been scooping up the altcoin consistently for a week. With the countdown to the Shanghai upgrade and the ETH token unlock event, there is a spike in Ethereum demand among retail investors.
Ripple price to close the week with a bang as next week will be crucial for another 20% profit
Ripple price is closing this week with very profitable numbers, even if a fade is ongoing. The fade occurred after bulls received a firm rejection at $0.50 and have been trading lower from that level since. If bulls can keep their hands on this momentum and the Relative Strength Index (RSI) is not overbought, at least some 20% profit is being prepared for next week.
Will Cardano price advance as analysts call it one of the favorite altcoins next to EOS and COLT to pop?
Cardano (ADA) price is making the cut and has been shortlisted by several analysts that have put ADA in their top altcoin, primed to explode to the upside soon. ADA is flirting with a second week of gains and could recover its attempt to hit $0.415 as a crucial level for any further uptrend or downtrend.
Is the new partnering-up strategy the right way for Vechain price to avoid a 30% correction?
Vechain (VET) price had a busy week as several new partnerships were announced. Next to integrating with Dappradar to promote cross-chain visibility, the partnership with Boston Consulting Group might be the one that draws the most attention. Vechain price though is not taking this news in a good way and rather is at risk of tanking further.
Bitcoin: Should you trust this BTC sell signal or wait for $34,000?
Bitcoin price shows a clear picture of its rally after it breached a long-term bullish pattern in mid-January. As the rally takes a breather, sell signs have started to emerge, which is putting investors in a confused state.