They are down the price and then buy more and dips again
CRYPTO MECHANIC
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Trump signed executive order for Bitcoin strategic reserves and the market dumped.
you might be wondering why it dumped while the news is so bullish.
Here is why.
Buy the Rumor, Sell the News: Traders often buy assets in anticipation of positive news (buy the rumor) and sell once the news is confirmed (sell the news). You all know trump was promising to do it in his election campaign and the topic was heating even more up since last week.
Market Expectations:
This move was already priced in when trump made a post last week and even before that like i said he is talking about it since his election campaigns.
If the market had already priced in the news, the actual announcement might not meet the heightened expectations, leading to a sell-off.
Besides price volatility America backing Bitcoin is really a positive news for BTC holders and Crypto.
The strong sell-pressure in the Bitcoin spot market has effectively nullified the gains made following former US President Donald Trumpâs March 1 announcement about a crypto reserve. Initially, Bitcoin surged 12%, moving from $85,000 to $95,000 in response to the news. However, according to analysts from Bitfinex, the intense selling pressure in the spot market has wiped out most of those gains.
As of now, Bitcoin is trading at $87,190, and a return to the $94,000 mark would require a nearly 8% increase from the current price, based on CoinMarketCap data. This highlights the significant impact of selling activity on Bitcoin's price despite initial positive momentum following the announcement. $BTC #USCryptoReserve #TrumpCryptoSupport
Metaplanet, a Japanese investment firm, has recently increased its Bitcoin holdings by acquiring an additional 497 BTC for $43.9 million, bringing its total Bitcoin holdings to 2,888 BTC. This acquisition was made at an average price of $88,448 per Bitcoin, and the total amount spent on these holdings now sits at around $240.2 million. These Bitcoin holdings have appreciated in value, now worth $251 million, resulting in paper profits for the firm.
This move follows another purchase of 156 BTC earlier in the week for $13.4 million. Since announcing its Bitcoin acquisition strategy in April 2024 and making it a core business line in December, Metaplanet has been steadily increasing its Bitcoin reserves. The company has set ambitious targets, aiming to accumulate 10,000 BTC by the end of 2025 and 21,000 BTC by 2026.
On the day of the announcement, Metaplanetâs stock surged by 17%, outperforming the broader Nikkei 225 index, which gained 0.55%. At the same time, Bitcoinâs price also saw a 4% increase, trading at $86,943. $BTC #JapanBitcoin