Metaplanet stock price jumped by 10% in Japan today, Dec. 3, as investors cheered the ongoing Bitcoin recovery. It soared to ¥392, well above the November low of ¥335.
Why the Metaplanet Stock is Soaring
Metaplanet share price surged on Wednesday as investors cheered the ongoing Bitcoin price recovery. After plummeting to $83,000 on Monday, the BTC price rallied to over $92,000 today.
The surge occurred as investors reacted to Vanguard’s decision to start offering crypto solutions, something it had long resisted. Eric Balchunas, the Senior ETF analyst at Bloomberg, called this rally the Vanguard Effect.
Vanguard’s embrace of cryptocurrencies is important, as the company has millions of American customers and over $10 trillion in assets. It also means that the two biggest asset managers in the world have embraced the industry. BlackRock, which has nearly $12 trillion in assets, runs the biggest crypto ETFs.
READ MORE: Will the Crashing MSTR Stock Price Rise or Crash in December?
Metaplanet stock price also jumped as investors reacted to the rising optimism that Donald Trump will pick Kevin Hassett to be the next Federal Reserve Chair. He largely confirmed this in a press conference on Tuesday, in which he claimed that the next chair was ‘there’.
Hassett is a former Coinbase advisor and has advocated aggressively for cutting interest rates, a move he believes will help boost the economy as it grapples with the impact of tariffs. Bitcoin and other risky assets tend to perform well when the Fed is dovish.
Such a move also benefits a company like Metaplanet, which has become one of the largest holders of Bitcoin, with over 30,000 tokens in its portfolio. The company is working to boost its Bitcoin holdings after it recently raised $130 million in debt backed by its Bitcoins.
Technical Analysis Suggests that the Metaplanet Share Price Has Bottomed
The daily timeframe chart shows that the Metaplanet stock price bottomed at ¥336, its lowest level in November this year. It has formed a double-bottom pattern, a common bullish reversal sign.
Metaplanet stock has also formed a bullish divergence pattern, as the MACD indicator has continued to rise and is now nearing the zero line. The Relative Strength Index (RSI) has also moved higher and is nearing the neutral 50 level.
Therefore, there is a possibility of a relief rally to the important resistance level at ¥493. This resistance level coincides with the 50-day Exponential Moving Average.
On the other hand, a drop below the important support level at ¥336 will invalidate the bullish Metaplanet stock price outlook as it will cancel the double-bottom pattern.
READ MORE: Zcash Price Prediction as ZEC Enters Markdown Phase of Wyckoff Theory
