Bitcoin’s recent price movement has been influenced by several macroeconomic and market-specific factors, including significant sell-offs and institutional activities. The market remains jittery due to low demand for US-based spot Bitcoin ETFs, raising overall fear.
However, on-chain data indicates that smart money has been buying Bitcoin despite the heightened fear. Bitcoin continues to have a macro bullish outlook, supported by the recent fourth halving event and the approval of spot BTC ETFs in various regions.
Institutional demand for Bitcoin has been inconsistent in recent weeks, with initial investments in US-based spot Bitcoin ETFs countered by significant sell-offs by the German government. The ongoing Mt. Gox repayment of over $8 billion and the FTX creditors’ repayment of about $16 billion are also pressured the market.
The current Bitcoin sell-off has created a buying opportunity for long-term investors, as Bitcoin is increasingly seen as a hedge against the debasement of fiat currency. Metaplanet Inc. recently purchased an additional 42.47 Bitcoins, worth about $2.42 million, bringing its total holdings to 203.734 Bitcoins.
Bitcoin has been forming a bullish flag over the past four months, suggesting a potential major uptrend breakout later this year. Analysts led by Benjamin Cowen believe a bullish breakout in Q4 is likely. Bitcoin dominance is expected to rise to 60 percent in the coming months before reversing to allow for the anticipated altseason.
Metaplanet’s recent Bitcoin purchase underscores a trend among companies to adopt Bitcoin as a strategic asset, seen as a hedge against economic instability and an investment in the long-term potential of cryptocurrency.
