Bitcoin Price Surges 10% as Japanese Firm Purchases BTC Worth ¥300 Million

Bitcoin Price Analysis:

Bitcoin price briefly surged above the $58,000 mark on Sept 9, reflecting a 10% growth performance in the last 4 days of trading. Recent markets reports suggests a major investment inflows from Japanese Firm may further boost investor confidence.

Japanese Company Metaplanet Acquires Another 300M YEN Worth of BTC

A prominent Japanese investment firm Metaplanet has expanded its Bitcoin treasury with a ¥300 million (~$2 million) purchase, according to a September 10 filing.

The firm acquired 38.464 BTC at an average price of ¥7.8 million ($54,517) during  Bitcoin’s recent price dip in early September, pushing its total holdings to 398.832 BTC.

This acquisition comes as part of Metaplanet’s long-term Bitcoin strategy, with total investments now amounting to ¥3.75 billion ($26.12 million). At Bitcoin’s current price of around $57,000, the firm’s total holdings are valued at $22.8 million.

Notably, Metaplanet’s Director of Bitcoin Strategy, Dylan LeClair, expressed his optimism for Bitcoin’s future price action on Sept 8, tweeting about the opportunity to deploy more capital as Bitcoin temporarily dipped below $54,000

This sentiment underscores the bullish outlook among institutional investors. Bitcoin now faces key resistance at $58,500, and a breakthrough could propel the price toward the $60,000 psychological level.

Conversely, solid support remains at $54,000, a level reinforced by the growing accumulation from corporate buyers. If market sentiment continues to improve, Bitcoin’s price could potentially sustain its upward momentum in the coming weeks.

Metaplanet Bitcoin Strategy Mirrors MicroStrategy

Metaplanet began its aggressive Bitcoin buying strategy in April 2024, describing it as a “strategic pivot” to maximize shareholder value. Doubling down last month, the company purchased ¥500 million ($3.4 million) worth of Bitcoin, completing its ¥1 billion buying plan financed through a loan.

More so, the firm also raised ¥10.08 billion through a stock rights offering to further bolster its Bitcoin reserves, signaling continued bullishness on the asset’s future.

Within 60-days of kick starting its Bitcoin strategy, Metaplanet’s stock price surged by approximately 1,479%, moving from ¥190 ($1.32) on April 1, 2024 to ¥1,101 ($7.69), before peaking at ¥3,000 ($20.95) on July  24, when Bitcoin reached $66,000.

Metaplanet’s approach mirrors that of U.S. software giant MicroStrategy, which has accumulated over $13 billion in Bitcoin under the leadership of Michael Saylor.

Earlier this week, Saylor predicted Bitcoin could reach $13 million per coin over the next two decades. While such forecasts are highly speculative, they exemplify the growing belief among institutional investors in Bitcoin’s long-term growth potential.

Metaplanet’s continued investment echoes this sentiment, reinforcing Bitcoin’s status as a hedge against traditional financial markets.

Bitcoin Price Forecast: Imminent Breakout Towards $60k

Since the US Bureau of Labor statistics published dovish NFP figures on Sept 6, Bitcoin’s price rapidly increased by 10%, peaking at $57,864 before retracing toward the $57,200 support level at the time of writing on Sept 10.

Technical analysis based on the Keltner Channel (KC) and RSI in the BTC price chart indicates that bulls are attempting to push the price higher but face resistance near the $62,000 level. The Keltner Channel shows Bitcoin is trading in the lower portion of its range, with the top boundary around $62,500 serving as immediate resistance.

Key support is established at $53,100, representing the lower boundary of the KC, a level BTC must hold to prevent further declines. The RSI is hovering around 46, indicating neither overbought nor oversold conditions, but the recent uptick suggests potential buying interest building up.

As seen in the chart, Bitcoin may face short-term consolidation around current levels. However, historical market trends suggest that recent moves, including Metaplanet’s acquisition of 300 million yen worth of BTC, could improve investor sentiment in the coming weeks.

In early, August, global risk assets, including cryptocurrencies, experienced a sharp downturn linked to unexpected rate hike of 0.25% by the Bank of Japan (BoJ), causing cascading liquidations across markets.

However, in rapid response to the global markets shake-up, the Japanese central bank governor Governor Kazuo Ueda issued public statements reassuring investors that further rate hikes will be suspended in the short-term.

Hence, while Metaplanet’s 300 million yen is only worth $2 million, it signals to global investors that confidence is growing again among key stakeholders within the Japanese economy.

Traders could take this as a major hint that negative aftershocks from Japan’s economic tweaks in July are now fading, reinforcing a bullish outlook for Bitcoin and other risk asset markets for Q4 2024.