Metaplanet stock price jumped by 10% in Japan today, Dec. 3, as investors cheered the ongoing Bitcoin recovery. It soared to ¥392, much higher than 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, BTC price rallied to over $92,000 today.
The surge happened as investors reacted to the decision by Vanguard to start offering crypto solutions, something it had always resisted. Eric Balchunas, the Senior ETF analyst at Bloomberg, called this rally the Vanguard Effect.
Embracing cryptocurrencies by Vanguard is an important thing 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.
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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 for cutting interest rates aggressively, a move that he believes will help to boost the economy as it grapples with the impact of tariffs. Bitcoin and other risky assets do well when the Fed is dovish.
Such a move also benefits a company like Metaplanet, which has become one of the biggest Bitcoin holders 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-like pattern, which is a common bullish reversal sign.
Metaplanet stock has also formed a bullish divergence pattern as the MACD indicator has continued rising and is now nearing the zero line. The Relative Strength Index (RSI) has also moved upwards and is nearing the neutral point at 50.
Therefore, there is a possibility that the stock will have a relief rally, potentially 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.
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