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Why is Bitcoin (BTC) price rising today?
The price of #Bitcoin (BTC) made a positive start to the new week, rising by approximately 3 percent to over $63,260. .
Several important factors pushed the Bitcoin price up today, including the entry of Japanese company Metaplanet into the cryptocurrency industry. Additionally, the expectation that long-term holders will increasingly dominate the Bitcoin supply in the coming months has further boosted investors' confidence.
Metaplanet, a Tokyo-listed investment firm, purchased 117.7 BTC worth approximately $7.19 million to hedge against Japan's mounting debt woes and yen volatility. This move is likened to MicroStrategy's move in the United States.$
“Metaplanet has adopted Bitcoin as a strategic reserve asset,” the company said in a May 13 press release, adding:
“This development is a direct response to economic pressures in Japan, particularly high levels of government debt, prolonged periods of negative real interest rates and the resulting weak yen.”
These factors contribute to the broader narrative of Bitcoin as a hedge against financial and monetary instability, further reinforced by its decreasing volatility over the years.
Bracebridge Capital, a Boston-based hedge fund that oversees approximately $12 billion in assets, attracted attention with data on spot Bitcoin #ETFs recently launched in the United States.
The fund reportedly owns $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.
Bitcoin's rise today is part of a 12 percent recovery trend since the beginning of May. This jump coincides with an increase in the 30-day average supply of Bitcoin holders who have held Bitcoin for more than 155 days.
