LFG Bitcoin Reserves At Risk As UST Dollar Peg Collapses
As the Terra stablecoin becomes depegged from the U.S. dollar, the biggest buyer of bitcoin in recent months could become its biggest forced seller.The below is an excerpt from a recent edition of Bitcoin Magazine Pro, Bitcoin Magazine's premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.UST Dollar Peg CollapsesWhat’s been developing over the weekend and has been amplified today is the depegging of the Terra stablecoin (UST) to the U.S. dollar now with Terra currently trading at $0.85.....
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Terra (LUNA) has been aggressive about filling up its reserves with trusted cryptocurrencies to serve as a backup for its stablecoin UST. This has evolved over time to include a number of various cryptocurrencies that now make up its reserves sitting at $2.38 billion. This is still a long way from where the Luna Foundation plans for its reserves to be, making it a work in progress. In this report, we take a look at these reserve currencies and the portion allocated to each one. Diving Into Terra’s Reserves As mentioned previously, Terra’s crypto reserves have gone up to as high as $2.38....
The web portal bitcointreasuries.org now shows close to two dozen firms with a large number of bitcoin reserves. Currently, the aggregate total bitcoin held in reserves by the 23 companies listed is roughly 785,999 BTC worth well over $10 billion dollars. This past August the billion-dollar firm Microstrategy announced it purchased 21,454 BTC for around $250 million. Then the Nasdaq listed company bought another 16,796 BTC and Microstrategy raised its reserve status to 38,250 bitcoins. Following Microstrategy’s lead during the first week of October, the firm Square Inc. revealed it....
The U.S. dollar’s dominant position as the reserve currency of choice may be in peril, as its share of global currencies held in reserves continues to decline. International Monetary Fund (IMF) data shows, the dollar’s share of reserves dropped from 66% in Q3 of 2014 to just above 60% in Q3 of 2020. This means the dollar’s share has been dropping at a rate of about 1 percentage point per year. Faltering Reserve Currencies Meanwhile, as one report suggests, this latest figure represents the dominant currency’s lowest share in almost 8 years. Furthermore, the report....
U.S. dollar weakness is painting a bullish short term outlook for Bitcoin in April. The U.S. dollar is starting to weaken once again as sellers are pushing the U.S. Dollar Index (DXY) downward, which could strengthen the momentum of Bitcoin (BTC) in the near term.Alternative assets like Bitcoin and gold are priced against the dollar. Hence, when the DXY starts to drop, it often causes BTC to rally against the dollar.BTC/USD (orange) vs. DXY (green). Source: TradingviewDollar's share of global reserves is dropping fastAccording to Holger Zschaepitz, a market analyst at Welt, the U.S.....
I'll trust that you as the reader are educated enough to know the U. S. Dollar is on it's last legs as the Global Reserve Currency. I've certainly written about the shaky financial situation of the U. S. enough, and there is no shortage of information online about the subject. The U. S. Government has started selling MRAPs to every backwoods county in the U. S. for pennies on the dollar, just because. They know what's going on, and when the Dollar falls, the stuff will definitely hit the fan nationwide, and those machines will be used. The Police State is being bred to be bigger, stronger,....