Metaplanet- Bitcoin Faces Short-Term Bearish Pressure as Metaplanet Increases BTC Holdings
Metaplanet– XRP has seen a notable 3% drop over the past 24 hours, leading losses among major cryptocurrencies. This decline comes as Bitcoin (BTC) enters the festive week in the red, with the cryptocurrency market facing a broader pullback. On the other hand, Metaplanet, a Japanese Bitcoin accumulator, made headlines by announcing its largest-ever Bitcoin purchase.
Metaplanet’s Major Bitcoin Purchase Boosts Holdings by 54%
Metaplanet, a Tokyo-listed company, has purchased a record 619.70 BTC for 9.5 billion yen (approximately $61 million). This acquisition has increased the company’s Bitcoin holdings by 54%, a significant move that reflects the growing interest in digital assets. With this purchase, Metaplanet now holds a total of 1,762 BTC, with an average purchase price of 11.85 million yen. The company has invested a total of 20.87 billion yen (around $133.2 million) in Bitcoin.
The move represents a remarkable yield, with Metaplanet reporting a 309.82% return on its Bitcoin investments between October 1 and December 23, up from just 41.7% in the previous quarter (July 1 – September 30). The company’s shares have surged by 2,100% this year, helping it become the 15th-largest publicly traded Bitcoin holder.
Bitcoin and Major Altcoins Struggling Amid Market Correction
Bitcoin’s price remains under pressure, down 1.5% over the past 24 hours, according to CoinGecko data. Ethereum (ETH), Cardano (ADA), Solana (SOL), and Dogecoin (DOGE) also saw declines of up to 2%. Despite the bearish sentiment, Chainlink’s LINK and Tron’s TRX managed to post gains, while the broader CoinDesk 20 (CD20) index saw a 1.39% drop.
Bitcoin is currently trading near $95,500, supported by the 50-day moving average, but analysts caution that the market could face further declines in the coming weeks.
Cautious Market Sentiment Amid Year-End Profit-Taking
Market observers are remaining cautious as the holiday season approaches, with many expecting continued volatility in the short term. Alex Kuptsikevich, Chief Market Analyst at FxPro, noted in an email to CoinDesk: “Markets continue to digest the Fed’s tougher tone, reinforced by the accumulated urge to lock in profits after a strong year.” He added that Bitcoin is receiving support near the $95,000 level, but warned that it is still too early to declare that the correction is over.
Kuptsikevich also mentioned that further declines in the stock market, particularly in Bitcoin and Ethereum, could trigger institutional investors to start pulling back more aggressively. “Reduced holiday liquidity has the potential to amplify this amplitude,” he said, predicting that the market could dip as low as the $70,000 range. However, he also suggested that the $90,000 level might present an “attractive level” for buyers to step in and halt the sell-off.
Institutional Moves and Holiday Liquidity Concerns
The holiday period tends to see reduced liquidity in financial markets, which could exacerbate price movements in both Bitcoin and the broader cryptocurrency space. As institutional investors navigate through the end-of-year market dynamics, their actions could influence the trajectory of Bitcoin and other major altcoins in the short term.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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