Understanding Today’s Surge in Bitcoin (BTC) Price: Key Factors Driving the Uptrend

  • Bitcoin (BTC) has started the new week on a positive note, with a price increase of approximately 3%, surpassing $63,260.
  • Several key factors, including the entry of Japanese company Metaplanet into the crypto sector, have pushed the price of Bitcoin up today.
  • Additionally, the expectation that long-term holders will increasingly dominate the Bitcoin supply in the coming months has further boosted investor confidence.

Bitcoin’s price surges as Japanese company Metaplanet enters the crypto sector and long-term holders are expected to dominate the Bitcoin supply in the coming months.

Metaplanet Turns to Bitcoin

Metaplanet, a listed investment company in Tokyo, has purchased approximately 117.7 BTC worth about $7.19 million to protect against Japan’s increasing debt troubles and the volatility of the yen. This move is likened to the move by MicroStrategy in the United States. The company stated in a press release on May 13 that “Metaplanet has adopted Bitcoin as a strategic reserve asset”.

ETF Development from Bracebridge Capital

Bracebridge Capital, a Boston-based hedge fund managing approximately $12 billion in assets, has drawn attention with data on spot Bitcoin ETFs recently launched in the United States. The fund is reported to own shares in the Ark 21Shares Bitcoin ETF (ARKB) worth $262 million, BlackRock’s iShares Bitcoin Trust (IBIT) worth $81 million, and Grayscale Bitcoin Trust (GBTC) worth $20 million. Bracebridge Capital’s involvement in Bitcoin ETFs signals increased confidence in BTC’s viability and longevity as an investment asset.

Long-Term Bitcoin Investor Inspires Confidence

Today’s rise in Bitcoin is part of a 12% recovery trend since the beginning of May. This jump coincides with an increase in the 30-day average supply of Bitcoin holders who have held Bitcoin for more than 155 days. According to Glassnode data, as of May 13, these institutions collectively own assets over 13.992 million BTC; this development shows an increase compared to the lowest supply since January 2023, which was 13.982 million BTC.

Notable Wedge Formation in BTC

Technically, today’s rise in BTC began after testing a support combination consisting of a short-term rising trend line and a horizontal level around $60,000. The rise is part of the accumulation occurring within a falling wedge formation. This formation occurs with two trend lines meeting at a peak; in this case, the support level will be around $54,000. Falling wedges are formations that show a bullish trend when the price rises above the upper trend line.

Conclusion

With the entry of major companies into the crypto sector and the increasing dominance of long-term holders, Bitcoin’s price is showing a positive trend. However, investors should conduct their own research before making any investment decisions.

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Jocelyn Blake
Jocelyn Blakehttps://en.coinotag.com/
Jocelyn Blake is a 29-year-old writer with a particular interest in NFTs (Non-Fungible Tokens). With a love for exploring the latest trends in the cryptocurrency space, Jocelyn provides valuable insights on the world of NFTs.
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