Bitcoin price rebounds after Terra’s LUNA Foundation Guard buys over $100 million in BTC
The Bitcoin price has risen with inflation in the past. When the Consumer Price Index reached its highest point since 1981 BTC began its recovery. The asset has seen a steady rise in value due to LFG’s constant Bitcoin purchases.
Bitcoin price recovers after recent correction
Bitcoinprice has a strong correlation to US tech stocks. The asset has recovered from the recent correction when the Consumer Price Index, (CPI), hit a high. A rise in CPI usually leads to a spike of Bitcoin price, as Bitcoin is often considered a hedge against inflation.
CPI measures the change in prices over time for a basket consumer goods and services.
The US CPI is at its highest point since 1981. A rise in inflation is a common reason for a surge in Bitcoin prices. Bitcoin saw a rebound and saw a rise to above $40,500.
The 8.5% CPI level was reached by VanEck’s director of digital assets strategy. This implies that inflation has already reached double-digits. This is the largest increase in CPI in 40 years, which indicates a rise of inflationary pressures. It also signals a bullish outlook for Bitcoin shareholders.
The ongoing Bitcoin price recover is also driven by LUNA Foundation Guard’s (LFG), consistent buying and accumulation BTC. LFG has a total balance of 42,406 BTC and recently made a purchase of $100 million in Bitcoin.
Although LFG’s BTC accumulation did not have a significant impact on LUNA prices, it has fueled Bitcoin demand and positively influenced the price.
Analysts predicted that Bitcoin would rise to $50,000. Analysts have identified a bullish pattern in the Bitcoin price chart, and believe that the asset will break the psychological barrier of $50,000. Analysts believe that the Bitcoin price downside is limited to $29,000 as shown in the chart.