Luna purchases $US1.5 Billion in Bitcoin and the interest rate hikes that don't add up
Luna purchases $US1.5 Billion in Bitcoin and the interest rate hikes that don't add up
Gooooood morning or not so good as we enter this market dip kicked off by a US Federal Reserve comment about raising interest rates, but we'll get to that soon. First I want to talk about Luna Foundation Guard.
The Luna Foundation Guard (LFG) has just added $US1.5 Billion in Bitcoin to their reserves to help maintain their stable coin, the UST's peg.
As we can see from the current market action their reserves are coming in quite well, although I don't know how much of it has actually been the reserve as UST and Luna seem to be doing really well even despite taking a hit it briefly over took Solana for 7th position. Exciting times to see if Luna will maintain or continue on it's trajectory.
Do Kwon is also on track to meeting his ambitious goal of $US10 Billion in Bitcoin as a reserve for UST which will put LFG in one of the top 10 Bitcoin holders.
But lets talk about this interest rate hike that makes no sense and is completely uncalled for which first lets cover why it makes no sense.
Traditionally interest rate hikes are utilised to curb spending and tackle inflation in summary, what that means is that we're all too rich and have too much money so instead of taxing us they hike interest rates to stop people spending money.
The announcement from the US Federal Reserve Chair, Jerome Powell to increase interest rates by half a percentage cause a shock move from some tech company who decided it was best to dump their Bitcoin and pay down debt which set the Crypto sector into frenzie.
The problem with this approach is that wages are stagnant and at an all time low with people unable to make ends meet. So the issue doesn't sit well with the commoners (us) because we were told to spend now we get punished.
Also with stagnant wages there has been huge corporate profits so the issue isn't so much that WE have too much money but rather that the Bankers and the elite have too much money and obviously they aren't going to tax themselved but rather come after us.
This is not financial advice and readers are advised to undertake their own research or seek professional financial services
▶️ 3Speak
