- LUNA, the native token of Terra blockchain is down nearly 10%
- The slip in LUNA price takes its total monthly losses to 34%
- Days earlier, the Luna Foundation Guard acquired $1.5B worth of BTC
YEREVAN (CoinChapter.com) – Terra blockchain’s native token LUNA continues to be on a freefall. After rallying nearly 150% between March and April to reach an all-time high of $119.18, LUNA has taken hard blows from the recent market corrections. According to data available on CoinMarketCap, the token is down 9.6% in the past 24 hours. Meanwhile, Bitcoin (BTC) extended its fall by another 7% to drop below the $36,000 market.
Experts attribute the recent market correction and Bitcoin’s terrible performance to the recent interest rate hike. As CoinChapter had earlier reported, the US Federal Reserve announced it will increase its benchmark interest rate by 0.5 percentage points. This marked the biggest hike in the last two decades.
The latest price drop makes LUNA the worst performing asset among the top 10 cryptocurrencies by market cap. The continued crash also extended Terra’s monthly fall to a massive 34%. On April 7, the token exchanged hands at over $109. However, its price fell as low as $72.34 as of May 7.
Luna Foundation’s $1.5B in BTC purchase
Terra’s poor performance comes just days after Luna Foundation Guard acquired an additional 37,863 Bitcoins (BTC). According to the foundation’s official Twitter handle, the recent purchase amounts to a total of $1.5 billion.
As the post explained, the foundation acquired Bitcoins in two over-the-counter (OTC) transactions. Out of the said amount, the first $1 billion came from Genesis Trading, while the $500 million was from 3 Arrows Capital (3AC).
At the time of writing, the foundation holds 80,394 Bitcoins (BTC) worth a little over $2.8 billion.
Despite the recent drop, some traders remain bullish on Terra’s prospects. However, at still 39% below its all-time high, LUNA needs immediate support from the bulls to stop its freefall.