Metaplanet Purchases Additional 42.47 BTCs, Bitcoin Price Attempts to Regain Bullish Sentiment

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As a long-term crypto investor with some experience under my belt, I’m keeping a close eye on the recent price action of Bitcoin (BTC). The market has shown some signs of recovery after a bearish week, but the fear and uncertainty remain palpable.

Last week, Bitcoin (BTC) ended with a downturn, but at the start of the second week of July, it displayed a somewhat optimistic trend. The price of Bitcoin surged approximately 5 percent over the last day, placing it around $57,000. Yet, apprehension has seeped into the cryptocurrency market due to muted interest in US-listed Bitcoin ETFs, causing unease.

The Bitcoin Fear and Greed Index decreased from over 44% last week to approximately 28% on Monday, indicating a heightened sense of fear among investors in the cryptocurrency market.

As a researcher studying blockchain data, I’ve noticed an intriguing trend emerging over the past few days. Smart money investors have been steadily increasing their holdings. However, this accumulation comes amidst heightened market fear.

Additionally, the Bitcoin market exhibits a robust bullish trend based on the historical significance of its most recent halving event and the regulatory approvals granted for spot Bitcoin Exchange-Traded Funds (ETFs) in various regions.

Mixed Demand for Bitcoin from Institutional Investors

I’ve observed a noticeable decrease in institutional appetite for Bitcoin over the past few weeks. Previously reported on Coinspeaker, the inflows of cash into US-based spot Bitcoin ETFs, coinciding with the substantial sell-offs by the German government, have dampened the optimistic outlook.

The $8 billion-plus Mount Gox crypto refund process, set to last another three months, significantly impacts the current crypto market downturn.

In the upcoming quarter, the process for repaying FTX’s creditors, totaling approximately $16 billion, is anticipated to commence.

As a financial analyst, I’ve observed the recent selling pressure in Bitcoin’s price. However, this downturn might present an attractive purchasing point for those with a long-term investment horizon. Additionally, from an insurance perspective, Bitcoin has emerged as a potential hedge against the ongoing erosion of fiat currency value due to debasement.

On Monday, Metaplanet Inc revealed that it had acquired an extra 42.47 Bitcoins, approximately valued at $2.42 million. Consequently, our current Bitcoin holdings amount to 203.734 coins. These new purchases were made post the recent green light from our board members.

The company has followed in the footsteps of MicroStrategy Inc (NASDAQ: MSTR) by adopting a Bitcoin strategy. This was done by MicroStrategy some years ago as a means to protect against increasing inflation and questionable monetary decisions.

What Next for BTC Price Action

As a crypto investor, I’ve noticed that Bitcoin’s price action over the past four months has resembled a bullish flag pattern. If this trend continues, we could be in for a significant upward price movement towards the end of the year. Notably, Bitcoin dipped below its 200-day Simple Moving Average (SMA) for the first time since October, but top analysts like Benjamin Cowen are optimistic that this downturn is just a temporary setback and a bullish breakout in Q4 is highly probable.

Something like this maybe.
2019 vs 2024$BTC
— Inmortal (@inmortalcrypto) July 8, 2024

Based on a technical analysis perspective, it’s anticipated that Bitcoin’s price will stabilize between $56,000 and $73,000 over the next few weeks. Yet, if Bitcoin cannot maintain its support above $56,000, a potential decline towards $48,000 may occur.

During this period, Cowen predicted that Bitcoin’s market dominance would climb further, approaching roughly 60%, before eventually giving way to allow altcoins to experience their anticipated surge in value.

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2024-07-08 14:06