Bitcoin Extends Sell-Off Despite Luna Buying, Strong On-Chain Data

Bitcoin (BTC) and other major crypto assets fell sharply over the past day, as stock markets around the world reversed earlier gains to losses after the US Federal Reserve (Fed) raised rates by 50 basis points. The sharp fall came despite massive bitcoin buying by Luna Foundation Guard (LFG).

At 11:23 UTC, BTC stood at USD 35,917, down 9% for the past 24 hours and almost 10% for the past 7 days. At the same time, Ethereum (ETH) traded at USD 2,685, down over 8% both on a daily and weekly basis

The selling pressure in bitcoin over the past day did not ease even as news emerged that Terra (LUNA) founder Do Kwon’s Luna Foundation Guard had purchased USD 1.5bn worth of BTC on the market. The latest purchase happened with the help of crypto hedge fund Three Arrows Capital, Do Kwon confirmed on Twitter.

The foundation’s buying is part of an effort to partially back Terra’s stable coin UST with BTC. Does Kwon has previously stated that he wants to buy as much as USD 10bn worth of bitcoin for the task?

“For the first time, you’re starting to see a pegged currency that is attempting to observe the Bitcoin standard. It’s making a strong directional bet that keeping a lot of those foreign reserves in the form of a digital native currency is going to be a winning recipe,” Do Kwon was quoted by CNBC as saying on Thursday.

Meanwhile, the crypto exchange also pointed to strong on-chain fundamentals for bitcoin in its monthly report for April published on Thursday.

According to the report, daily active addresses on the Bitcoin network rose by 0.2% month-over-month in April. And despite the rise being small, Bitcoin was the only tracked network – besides Solana (SOL) – that saw a rising number of daily active addresses in April.

For comparison, the number of active addresses on Ethereum dropped by 3% over the same period.

Despite these somewhat optimistic on-chain figures, however, analysts expressed a largely negative sentiment about the market after yesterday’s sell-off.

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