What to know:
- XRP fell by 3% in the last 24 hours, leading declines in major tokens, as Bitcoin (BTC) begins the festive week under negative pressure.
- Tokyo-listed Metaplanet has purchased a record 619.70 BTC, significantly increasing its BTC holdings by 54%.
- Market analysts are adopting a cautious stance as the holiday season approaches, displaying a bearish outlook.
XRP has seen a decline of 3% over the last day, making it a primary contributor to losses among key cryptocurrencies. Meanwhile, Bitcoin (BTC) has commenced the festive week in a downturn while Metaplanet, a cryptocurrency acquisition firm based in Tokyo, announced its largest purchase yet.
This notable purchase included 619.70 BTC for approximately 9.5 billion yen (or $61 million), boosting Metaplanet's Bitcoin holdings substantially.
Bitcoin's price remains approximately 1.5% lower in the past 24 hours, with Ether (ETH), Cardano's ADA, Solana's SOL, and Dogecoin (DOGE) experiencing declines of up to 2%. On the other hand, Chainlink's LINK and Tron's TRX have seen gains, although the broad-based CoinDesk 20 (CD20) index fell by 1.39%.
To date, Metaplanet has acquired 1,762 BTC for a total of 20.87 billion yen (around $133.2 million), averaging a purchase cost of 11.85 million yen. Between October 1 and December 23, the firm has reported a BTC yield of 309.82%, substantially up from the 41.7% reported from July 1 to September 30.
Metaplanet has implemented innovative strategies for funding its Bitcoin acquisitions since initiating this tactic in April. As of December 20, the firm issued a ¥5.0 billion issuance under its 5th Series of Ordinary Bonds to EVO FUND, a zero-coupon bond maturing on June 16, 2025, with early redemption options connected to stock acquisition rights.
In total, Metaplanet has conducted 19 distinct Bitcoin purchases through varied capital market operations and operational income. Notably, the company's shares have surged by 2,100% this year, positioning them among the largest publicly traded Bitcoin holders globally.
However, market dynamics remain tentative ahead of the holiday season, as caution prevails among analysts.
“Markets continue to digest the Fed's tougher stance, underscored by the resultant need for locked-in profits after a robust year,” Alex Kuptsikevich, FxPro chief market analyst, stated in correspondence with CoinDesk. “Bitcoin is presently navigating around $95.5K, facing support near the 50-day moving average on recent trading days. While a market decline was anticipated, it's premature to declare this as the closure of the correction.”
“A downturn in the stock market, especially noted in Bitcoin and Ethereum, could stimulate institutional investors to initiate a deeper retracement. The diminished liquidity over the holiday might amplify price fluctuations, possibly leading to a dip into the $70K range,” Kuptsikevich added, noting that the $90,000 threshold could serve as a favorable point for buyers to stem the sell-off.
