β€‹β€‹πŸ¦ Institutions continue to invest in BTC despite the drawdown to $32,000 🏦

Today, Bitcoin has updated another anti-record since the summer of 2021 – the asset’s price fell below $32,000. BTC lost 5% in the last 24h, while the weekly decline is estimated at 18%. Despite the bearish trend since November last year, institutional investors continue to buy BTC, counting on the long-term growth of the cryptocurrency.

βœ… LUNA bought $1.5 billion worth of BTCΒ 

On May 5, the non-profit organization Luna Foundation Guard (LFG) announced the purchase of 37,863 bitcoin coins for ~ $1.5 billion at the then exchange rate. Luna Foundation Guard completed an OTC deal with broker Genesis, swapping $1 billion worth of UST tokens for BTC, and bought $500 million worth of bitcoin from hedge fund Three Arrows Capital.

The BTC investments are part of the company’s strategy to secure the Terra (UST) algorithmic stablecoin. Representatives of the project stated that the ultimate goal is a $10 billion BTC reserve, while the current total value of the accumulated coins is $3.5 billion.

Nevertheless, the purchase of BTC did not protect the UST token, which lost its peg to the US dollar yesterday and fell by 40%. Experts attribute this to a market decline and a severe outflow of capital from the ecosystem. From the largest protocol, Anchor, which provides demand for the token by paying holders almost 20% per annum, $3.3 billion worth of assets was withdrawn on May 9. It led to the loss of the UST’s peg to the dollar and the fall of the associated LUNA token.

βœ… Microstrategy will continue on its BTC investment pathΒ 

Microstrategy, the number-one institutional crypto investor, concluded that the practice of buying BTC is successful, and therefore the company will continue to implement this strategy. In addition, Microstrategy is considering options for additional income from free BTC coins in reserve.

The company currently owns 129,218 BTC, purchased for $3.97 billion at an average price of about $30,700. Previously, Microstrategy’s reserves were estimated at $5.8 billion, but the assets’ value decreased to $4.1 billion due to a market decline.

βœ… El Salvador bought 500 BTC amid a drawdown

Salvadoran President Nayib Bukele revealed that his country purchased additional 500 BTC during the market decline. The average purchase price is $30,744 (~ $15 million).

The Central American state has become one of the most ardent supporters of cryptocurrencies. El Salvador was the first to legalize bitcoin, accumulating BTC reserves since the summer of 2021. The country’s total crypto assets are estimated at 2301 BTC or $71 million.

πŸ€” Do you plan to follow the institutions’ lead and buy BTC during the market decline?