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Today, Bitcoin‘s price climbed to $63,295, which is a strong position considering the weekend’s challenging $60,000 mark. Altcoins have seen gains exceeding 6%, providing motivation for investors. Bitcoin started the new weekly session positively, maintaining its strength with an approximate 3% increase. But what was the reason for this rise?
Why Did Cryptocurrencies Rise?
Japan-based investment firm Metaplanet purchased 117.7 BTC as a hedge against Japan’s rising debt issues and yen fluctuations. The first to do this was the US-based MicroStrategy, which became the largest corporate Bitcoin investor through its massive purchases. The company stated in its press release on May 13th:
“Metaplanet has adopted Bitcoin as a strategic reserve asset. This move is a direct response to ongoing economic pressures in Japan, especially high levels of government debt, prolonged negative real interest rates, and consequently a weak yen.”
Bracebridge Capital, managing $12 billion in assets, also announced sufficient purchases of spot Bitcoin ETFs. The company holds millions of dollars in various ETFs:
- $262 million in Ark 21Shares Bitcoin ETF (ARKB)
- $81 million in BlackRock’s iShares Bitcoin Trust (IBIT)
- $20 million in Grayscale Bitcoin Trust (GBTC)
Now, billion-dollar investment firms are also openly expressing their confidence in Bitcoin, motivating the market’s next phase.
Bitcoin and Predictions
There has been an increase in the reserve size of addresses holding BTC for more than 155 days. Compared to two weeks ago, the increasing reserves reflect ongoing demand and long-term faith. This improved scenario, as a result of institutional demand, is supported by investors adding BTC ETFs to their reserves following ETF approvals. This week, with the 13F filings, we will see which companies hold how much in BTC ETFs.
From a technical standpoint, today’s rise indicates a reaction from the convergence of the short-term rising trend line and the $60,000 support. Overall, the bounce confirms the consolidation phase within the falling wedge formation.
If a technical breakout occurs, new peaks between $64,650 and $75,550 could be seen.
