Bitcoin (BTC) could repeat this week’s rally to weekly highs after the Blockchain Terra protocol emerged to buy another $125 million in BTC.
The wallet, believed to be owned by Terra but not officially confirmed to be under its control, sent another 125 million Tether (USDT) to Binance on March 23.
Rinse and repeat winning 5.6% BTC prizes?
This week, a new player has entered the bitcoin price narrative after Terra co-founder Do Kwon unveiled a plan to back the new US dollar stablecoin TerraUSD (UST) with both BTC and the Terra LUNA token.
He told commentator Udi Wertheimer last week that a $3 billion purchase was needed for that, adding that the bulk of the purchases had not yet been made at the time.
An analysis of a hypothetical wallet confirms this thesis: the first transaction worth $125 million was sent to Binance on March 21st. In the following hours, the BTC/USD pair rose by about 5.5%.
A similar transaction has taken place now, leading to renewed speculation that Bitcoin could soon see another $125 million in a buyer’s order in minutes.
For renowned trader, analyst and commentator Cantring Clark, the movement itself was enough to enter the market.
He told his Twitter followers, “The Terra Foundation just sent another $125 million to Binance. The last time they did this was before they joined BTC. I plan to keep up. I will step back and think again if we miss these downturns.”
Kuhn himself has not confirmed any activity at the time of writing, stating that he has spoken extensively during the interview with Wertheimer.
Screenshot of transactions claiming to buy Terra BTC through Binance. Source: Eterscan
The trader needs a $45,500 re-check to be up to date.
However, there were no signs of new bullish momentum in the BTC/USD markets at the Wall Street open on March 23rd.
Related: Bitcoin Down 3.6% From Weekly Highs – What Key BTC Price Levels To Look Out For?
The pair was trading near $42,000 after dropping above $1,300 on the eve of the high, according to Cointelegraph Markets Pro and TradingView.
“That should be over $45,500,” trader, analyst and podcast host Scott Melker added in his latest YouTube update of the day as of this writing.
“Everything else is just mockery.”
However, on the daily chart, he indicated that the narrowing of the Bollinger Bands indicates upcoming volatility, with BTC/USD losing its upper band this week.