Bitcoin Surges 3% Amid New Investments and Confidence from Long-term Investors
Summary:
Bitcoin rises by roughly 3% to surpass $63,260 amid positive market trends. Influencers of the growth included, Japan-based Metaplanet's foray into cryptocurrency and expectations for long-term investors to control Bitcoin's supply in the future. Meanwhile, Boston-based hedge fund Bracebridge Capital revealed exposure to Bitcoin’s recently launched exchange-traded funds (ETFs). The report also mentions Bitcoin’s price resurgence as part of a recovering trend, which aligns with increased holding by long-term investors. Rising predictions indicate a surge in BTC price towards the range of $64,650-75,550 in May.
Bitcoin (BTC) has made a promising start to the week, witnessing an increase of roughly 3% to exceed $63,260. This advancement outpaces the overall growth of the cryptocurrency market, which saw a rise of about 2.5%. This upward trend in Bitcoin's value can be attributed to several influencing factors, including the engagement of Japanese firm Metaplanet in the cryptocurrency field, and predictions that long-term investors will predominantly control Bitcoin's supply in the future.
Metaplanet, a Japan-based investment corporation, has invested in 117.7 BTC, with an estimated worth of $7.19 million. This strategic move aims to guard against Japan's mounting debt problems and fluctuations in yen value, mirroring actions taken by the US-based venture, MicroStrategy. Metaplanet considers Bitcoin as a vital reserve asset to counteract the continual economic strains in Japan, including elevated government debt, lengthy phases of negative real interest rates, and a weakening yen.
In addition to being a safeguard against economic and financial instability, the wider acceptance of Bitcoin as a dependable asset has been accentuated due to a decrease in its volatility over time.
Furthermore, Bracebridge Capital, a Boston-originated hedge fund responsible for nearly $12 billion in assets, has shown considerable engagement with the freshly introduced US spot Bitcoin exchange-traded funds (ETFs). The fund reportedly owns a significant amount in three different Bitcoin ETFs, indicating an increasing assurance in Bitcoin's resilience and continued relevance as an investment property.
In recent trends, Bitcoin’s price uptick is assisting a revival trend, with recorded growth of around 12% since the start of May. This increase runs parallel with the upward trend in the 30-day average supply owned by Bitcoin's long-standing investors – those who have held BTC for a period exceeding 155 days.
Bitcoin's increasing value can be traced back to reaching a solid support confluence, identified by a temporary upward-trending line and a long-standing level at approximately $60,000.
From a broader perspective, this bounce is part of a trending consolidation happening within a perceived falling wedge pattern. This pattern indicates a potential bullish reversal when the price breaks the upper trendline, leading to an increase in price. This could potentially propel the BTC price towards the range of $64,650-75,550 in May.
The content of this article does not serve as investment guidance or proposals. As all investments and trading actions carry risks, it is advised audiences conduct their research before making any decisions.
Published At
5/13/2024 4:20:40 PM
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