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After Only 313 Bitcoin Remaining with LFG, Is BTC Price in Safe Hands Now?

Written by: Sahana Vibhute

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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May 16, 2022

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Article Highlights
  • Luna Foundation Guard tried its level best to utilize their reserves to stabilize the LUNA & UST price, but all appears to have failed heavily

  • The BTC reserves with the Luna Foundation has depleted to a large extent from more than 80,000 BTC to 313 BTC

  • Therefore, the traders are currently expecting a huge price rebound as huge bets on BTC longs have been placed

The Luna Foundation recently released a statement citing the balances on their reserves as the platform’s Bitcoin reserves made a huge noise of let. The thread documented how the platform disbursed millions of dollars worth of crypto and eventually failed to stabilize the destabilized assets.  

The foundation clearly states the number of BTC and the other crypto reserves the platform holds. As per the recent statistics, LFG holds only 313 Bitcoin along with 39,914 BNB, 1,973,554 AVAX, 1,847,079,725 UST and 222,713,007 LUNA of which nearly 90% of LUNA has been staked with validators. 

Therefore, now the question here arises, whether the crypto space has overcome the bearish scenario completely? 

Huge ease among the crypto traders was witnessed as a huge amount of BTC long bets were placed on Bitfinex. According to some reports, nearly 84,500 BTC in long positions has been placed. Therefore, it clearly indicates that the traders are now extremely bullish on the BTC price and expect a huge jump incoming for the asset in the upcoming days. 

On the contrary, what if the BTC price slashes a bit beyond the present support levels, which may be a huge stop loss for long bets? Therefore, in such a case, Bitcoin current is in a very decisive position as a slight plunge from here may again lead to a huge long liquidation. This in turn may slash the price below $27,000 igniting the toughest bearish phase in history. 

Therefore, a significant dump may be heavily expected if, case, the BTC prices break down or heads strongly towards the lower support. However, the technicals point out that a significant dump may make its way out as the selling volume may soon make its room. 

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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