Terra, which is best known for its UST stablecoin, bought another significant batch of BTC as part of a three-month plan to buy $125 million worth of the cryptocurrency every day. According to Bitinfocharts, the majority of people in the cryptocurrency world feel that a massive buying spree could be the key driver of the current Bitcoin rise.
At the time of writing, the wallet, which gets payments after each purchase, had about $1 billion worth of Bitcoin in its possession. According to the wallet’s history, the previously announced $125 million purchases per day are actually being made.
Source: Bitinfochart
Since March 20, the wallet has grown from “just” 9,564 BTC to 21,325 BTC, with about 3,000 BTC being purchased each day. At the end of the buying binge, the wallet’s overall worth should be about $11 billion, which is now more than 10% of Bitcoin’s total market capitalization.
Terra’s $125 million acquisitions remove a significant amount of liquidity from the market, which has a daily trading volume of $31 billion.
Numerous analysts expressed both good and negative sentiments regarding Terra’s massive buying binge, which was made public. The primary issue that this surge may encounter is a lack of liquidity as a result of the removal of over a hundred thousand BTC from cryptocurrency exchanges.
Exchanges have seen enormous outflows since the beginning of 2021, which might lead to a supply shock if the market is hit with another round of large purchases, as we saw last year. If the price of the first cryptocurrency continues below $50,000, Terra is anticipated to own over 200,000 BTC.
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