Bitcoin Update Metaplanet Acquires 106 More BTC Propelling Price Beyond 66K
Bitcoin’s price has made a significant recovery in the last 24 hours, surpassing the crucial support/resistance level of $66k for the first time since late July. The price of Bitcoin jumped more than 5 percent during the early Asian session on Tuesday, October 15, reaching approximately $65,980. This rally has also contributed to a surge in the total crypto market cap, which now stands above $2.4 trillion.
The impressive rebound in the crypto market has resulted in the forced liquidation of over $245 million from leveraged traders, primarily affecting short traders. However, it is important to note that institutional investors have played a major role in Bitcoin’s resurgence.
The recent surge in major stock indexes, particularly the S&P 500, has boosted confidence in Bitcoin as an asset class, especially among institutional investors. BlackRock’s CEO, Larry Fink, believes that Bitcoin is an asset in its own category and that its mainstream adoption will not be affected by the presidential candidate. Fink even speculates that Bitcoin’s market cap could reach levels comparable to the housing market, which currently exceeds $50 trillion.
In light of this, institutional investors, such as Japan’s Metaplanet Inc. and MicroStrategy Inc., have intensified their Bitcoin adoption strategies to protect against fiat devaluation. Metaplanet recently announced its purchase of an additional 106.977 Bitcoins, worth approximately $6.69 million, bringing its total holdings to 855.478 Bitcoins. This move has significantly boosted Metaplanet’s stock market performance.
In the United States, BTC ETFs have also experienced a significant influx of cash. Fidelity’s FBTC and Bitwise BITB recorded net cash inflows of over $239 million and $100 million, respectively, on Monday.
Looking ahead, Bitcoin’s price faces a critical hurdle around July’s peak of over $68,224. Renowned trader Peter Brandt suggests that clearing this hurdle is necessary for a bullish breakout and the possibility of reaching a new all-time high in the near future. The next few weekly closes will be crucial in determining Bitcoin’s price action in the long term. However, if the price retraces below $63k, it could invalidate the current bullish sentiment and set the stage for a mid-term bearish outlook.