Bitcoin continued its downward trend after a major options expiry on Friday. It also plunged as Convano, a sleepy Japanese company, announced a BTC buying strategy.
Summary
- Bitcoin price could crash to $100,000 as the recent momentum wanes.
- Convano, a Japanese company, aims to buy coins worth $3 billion.
- Bitcoin strategy companies have lost momentum this year.
Convano to accumulate $3 billion worth of Bitcoin
The Bitcoin (BTC) price, at last check on Saturday, is down more than 5.4% over the previous seven days, and down 13% from its all-time high this year. The rising uncertainty about the Federal Reserve, rising crypto liquidations, and a multi-billion-dollar options expiry triggered a crash.
Still, despite the current crash, a small Japanese nail salon operator known as Convano has launched a new Bitcoin buying strategy. It is now rising about $3 billion, which it will use to acquire 21,000 Bitcoin. Its planned capital raise is much higher than its market capitalization of $386 million.
Convano hopes to become a successful story like Strategy and Metaplanet. Strategy, formerly known as MicroStrategy, has seen its market capitalization jump from approximately $1 billion in 2020 to $90 billion, primarily driven by its Bitcoin buying strategy.
Similarly, Metaplanet has moved from being a hotel owner to a $2 billion company, helped by its 18,991 Bitcoin purchases.
The risk for Convano is that Bitcoin treasury companies are not doing well. Strategy stock has plunged by over 25% from its 2024 high, while Metaplanet has crashed by over 50% from the year-to-date high.
Other top companies that have adopted this strategy, such as GameStop, MicroCloud Hologram, and Trump Media, have also slumped. According to BitcoinTreasuries, there are now over 100 companies holding over 989,926 coins.
Bitcoin technical analysis
The daily timeframe chart shows that the BTC price has crashed after peaking at a record high of $124,200 earlier this month. BTC has moved below the 100-day and 50-day Exponential Moving Averages, while the Average Directional Index rose to 19, indicating that the downtrend is strengthening.
It has also formed a double-top pattern and moved below the neckline at $111,834. This pattern has a height of about 9.3%. Measuring the same distance from the neckline means that it may crash to $100,000 in the coming days.
