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Crypto Founder Hints At $3 Billion Bitcoin Buy In The 'Immediate Term'

Published 22/03/2022, 11:19
© Reuters.  Crypto Founder Hints At $3 Billion Bitcoin Buy In The 'Immediate Term'
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Do Kwon, co-founder of the Terra (CRYPTO: LUNA) blockchain protocol, said he plans to buy $3 billion worth of Bitcoin (CRYPTO: BTC) in the immediate term.

What Happened: In a Twitter Inc (NYSE: NYSE:TWTR) space hosted by Udi Wertheimer on Mar. 19, Kwon hinted at an imminent large-value purchase which will go towards building Terra’s Bitcoin reserves.

Last week, Kwon announced that TerraUSD (CRYPTO: UST) will transition from an algorithmic stablecoin to a Bitcoin-backed stablecoin. Terra plans to build $10 billion worth of Bitcoin reserves for the cause.

Why It Matters: Earlier today, market participants noticed a large transaction on the blockchain leading to speculation that Kwon had gone through with the BTC buy order.

Blockchain wallet tracker Whale Alert highlighted a $125 million transfer of Tether (CRYPTO: USDT) to crypto exchange Binance from a wallet associated with Terra.

Crypto traders found that a BTC/USDT buy order was executed on Binance with $60 million worth of buy volume.

Traders speculated that more buying activity may be underway, seeing as the wallet address had a balance of $1.65 billion worth of USDT and USD Coin (CRYPTO: USDC).

Price Action: Bitcoin saw a sudden spike to $43,124 during Asian hours on Tuesday. The market-leading cryptocurrency was trading at $42,226 at press time, gaining 3.12% in the last 24 hours.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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