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Weekly crypto news: Terra up €150M from Bitcoin purchases

Weekly crypto news: Terra up €150M from Bitcoin purchases

It is now the third week in a row that Bitcoin and the rest of the crypto market are showing green numbers. The impact of the war in Ukraine and other macroeconomic factors, such as rising interest rates, already seems forgotten as prices are going through the roof.

In this week's news overview, the recent price increases are discussed, but also some less good news regarding Axie Infinity (AXS). Fortunately, it does end with some good news, as Terra (LUNA) recently made huge Bitcoin purchases, which are now generating substantial profits. Read along for this week's crypto news summary (March 25, 2022 through March 31)!

Bitcoin breaches major resistance levels

Last week, Bitcoin already managed to get close to €40,000 after a gradual rise over a number of days, but this week the magic limit of €40,000 was actually broken. On the night of March 24-25, BTC crossed the €40,000 mark, and it hasn't gone below that since. In fact, the number one cryptocurrency has only continued to rise.

On the evening of March 27, Bitcoin suddenly shot up by 8%. It reached a peak of €43,600 on March 28. Bitcoin broke two very important resistance levels in one week, those of €40,000 and €42,000. In particular, breaking through €42,000 indicates that there may be further room for the price to increase and perhaps even a renewed bull run.

At the time of writing, Bitcoin is consolidating slightly above €42,000, where it is now trying to establish a support level. If it is successful in this, it will test the next resistance level at €44,200. According to experts, this is the most important resistance level on the way up for Bitcoin. If it is broken, a new record high could possibly even be reached in the future. Of course, macroeconomic factors always remain important. Certain events could always throw a spanner in the works.

Axie Infinity's Ronin Network was hacked for €560 million

One of the biggest crypto hacks ever took place this past week. At Ronin Network, a major platform for the popular mobile game Axie Infinity, €560 million was stolen.

In the game, players fight cartoon pets called Axies to earn cryptocurrency. The game is hugely popular with millions of players around the world hoping to win cryptocurrency and collect the game's non-fungible tokens (NFTs). It is especially big in the Philippines, where playing has become a full-time and potentially lucrative job.

Ronin Network, which is also owned by Vietnamese parent company Sky Mavis, allows players to exchange the digital coins they earn in Axie Infinity with other cryptocurrencies such as Ethereum.

It was brought out that a hacker transferred €485 million in cryptocurrency to himself six days ago, but the company only noticed on Tuesday when a customer was unable to withdraw his money.

The stolen money has since increased in value with the price of cryptocurrencies to be worth about €560 million.

Terra makes a big profit on Bitcoin reserves

The Luna Foundation Guard (LFG), a nonprofit organization based around Terra, is currently pushing ahead with plans to back its new TerraUSD (UST) stablecoin with both Bitcoin and its own LUNA token.

The plans were only unveiled this month by Terra co-founder Do Kwon, but the destination wallet for the funds has been active for some time and saw significant inflows as early as January.

Since mid-March, buying has accelerated, and in just a few short weeks LFG's balance has passed 30,000 BTC.

As if that wasn't impressive enough, the rush to buy Bitcoin, whether related to Terra's purchases or not, has earned the organization 150 million euros in indirect profits. At its highest point this week, above 43,000 euros, profits reached 167 million euros.

These reserves are intended to serve as collateral for UST, so they are unlikely to be sold any time soon. Terra is now the third largest Bitcoin holder. It is still ahead of Tesla and Microstrategy, with 43,000 BTC and 125,000 BTC respectively.

Luc Smits van Oyen
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