Today’s rise in Bitcoin’s price is primarily driven by Metaplanet’s entry into the cryptocurrency sector and growing BTC supply among its long-term holders.
The price of Bitcoin (BTC) kickstarted the new weekly session on a positive note, rising by approximately 3% to reach over $63,260. In doing so, the top cryptocurrency outperformed the broader cryptocurrency market, which gained around 2.5%.
BTC/USD versus TOTAL crypto market capitalization daily performance chart. Source: TradingView
Several key factors are propelling Bitcoin’s price upward today, including Japanese company Metaplanet’s entry into the cryptocurrency sector. Additionally, the anticipation that long-term holders will increasingly dominate Bitcoin’s supply in the upcoming months has further boosted investor confidence.
Metaplanet turns to Bitcoin
Metaplanet, a Tokyo-listed investment firm, has acquired 117.7 BTC, valued at approximately $7.19 million, to safeguard against Japan’s escalating debt woes and yen volatility. This move is similar to that of its counterpart, MicroStrategy, in the United States.
“Metaplanet has adopted Bitcoin as its strategic reserve asset,” the company said in the press release on May 13, adding:
The move is a direct response to sustained economic pressures in Japan, notably high government debt levels, prolonged periods of negative real interest rates, and the consequently weak yen.”
JPY/USD monthly price performance chart. Source: TradingView
These factors contribute to the broader narrative of Bitcoin as a protective asset against fiscal and monetary instability, strengthened further by its declining volatility over the years.
Boston hedge fund reveals Bitcoin ETF exposure
Bracebridge Capital, a Boston-based hedge fund overseeing about $12 billion in assets, has revealed decent exposure to the recently launched spot Bitcoin exchange-traded funds (ETFs) in the United States.
Notably, the fund reported owning $262 million worth of Ark 21Shares Bitcoin ETF (ARKB), $81 million worth of BlackRock’s iShares Bitcoin Trust (IBIT), and $20 million worth of Grayscale Bitcoin Trust (GBTC) shares.
Source: X
Bracebridge Capital’s exposure to Bitcoin ETFs hints at increasing confidence in BTC’s viability and longevity as an investment asset. This optimistic fundamental is, in turn, one of the reasons behind BTC’s price growth today.
Bitcoin long-term holders back to accumulating
Bitcoin’s price rally today is part of a rebound trend that has witnessed a 12% growth since the beginning of May. Interestingly, this bounce aligns with an increase in the 30-day average supply held by Bitcoin’s long-term holders, a cohort that represents entities holding BTC for more than 155 days.
As of May 13, these entities collectively hold over 13.992 million BTC, an increase from 13.982 million BTC, which was the lowest supply held since January 2023, observed just two weeks prior, according to Glassnode data.
Bitcoin supply held by long-term holders. Source: Glassnode
The alignment of a price increase with a growing trend in long-term holding underscores a potentially bullish sentiment. When more entities are willing to hold Bitcoin for extended periods, it suggests a shift from speculative short-term trading to more strategic, long-term investment approaches.
BTC price support confluence at $60,000
From a technical perspective, Bitcoin’s rise today is part of a rebound that started after testing a support confluence comprising of a short-term ascending trendline and a horizontal level at around $60,000.
BTC/USD daily price chart. Source: TradingView
Looking broadly, the bounce is part of a consolidation trend occurring inside what appears to be a falling wedge pattern. This pattern is characterized by two converging descending trendlines meeting at an apex, which, in this case, is around $54,000.
BTC/USD daily price chart. Source: TradingView
Falling wedges are bullish reversal patterns that culminate when the price breaks above the upper trendline. This breakout typically leads to a price increase equivalent to the maximum distance between the upper and lower trendlines at the widest point of the wedge.
This technical rule can cause the BTC price to rise toward the $64,650-75,550 range in May, depending on the breakout point.
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