Following a recent $43.9 million Bitcoin investment, Metaplanet’s stock rises sharply as the firm earns a 45.1% BTC yield.
Today, Metaplanet’s stock is up 14%, continuing its upward trend, following the Japanese company’s announcement of a new acquisition of 497 Bitcoins for an investment of $43.9 million. The most recent purchase coincides with a decline in the price of Bitcoin and extreme volatility in the larger cryptocurrency market as Trump’s tariffs take effect. As of this writing, Bitcoin has briefly recovered more than 4.52% after plunging to $83,000 on Monday.
Metaplanet buy the Bitcoin dips
Despite significant market volatility and uncertainty, publicly traded company Metaplanet, known as Japan’s MicroStrategy, is adding Bitcoins to its Treasury. The company said earlier today that it has acquired 497 more Bitcoins, totaling an investment of 443.9 million. Simon Gerovich, the company’s CEO, stated that the acquisition was done at an average price of $88,448 per Bitcoin.
With a total investment of $240.2 million, Metaplanet now has 2,888 BTC in total holdings as of March 5, 2025. The average purchase price of the company’s Bitcoin holdings is about $83,172 per coin.
Simon Gerovich also reported that the company has performed well thus far this year, with a 2025 Bitcoin yield of 45.1%. This exceeds the company’s predetermined goal of a 35% Bitcoin return every quarter in 2025.
This outstanding success has caused the Metaplanet stock to soar 16.89% as of this writing, reaching 3,910. The stock price reached an all-time high of almost 7,000 JPY levels in early February 2025, but it lost about half of its gains in the last few weeks due to a significant decline in the price of Bitcoin. The stock has once again reversed its direction to the upside, forming a base and support at 3,310 JPY.
BTC whales seize buy-the-dip opportunity
Whales are once again buying the dips after the Bitcoin price fell near $83,000 on Monday. According to renowned cryptocurrency expert Ali Martinez, since the price of bitcoin dropped below $88,000 on February 24, Bitcoin whales have bought over 20,000 BTC. This accumulation indicates strong buy-side interest at current levels, as major players contribute to significant accumulation.
Additionally, analyst Martinez brought out the Bitcoin risk measurements, such as the Sharpe ratio, which yields risk-adjusted returns and normally returns to a “Low Risk” zone after hitting a “High Risk” level.
Martinez pointed out that when the market stabilizes, this dynamic offers investors a window of opportunity to get ready for a possible “buy-the-dip” situation. As a result, investors are strategically accumulating Bitcoin at the current prices in order to position themselves for future profits.
Litecoin (LTC) falls 12% as indicators suggest oversold conditions
With its price hovering at $100 and its market capitalization plummeting to $7.5 billion, Litecoin (LTC) has lost almost 12% of its value in the past day. The steep drop occurs as selling pressure increases, driving Chaikin Money Flow (CMF) further into negative levels and LTC’s RSI into oversold territory.
Litecoin (LTC) may challenge the $92.5 support and fall below $80, its lowest level since November 2024, if the downward trend persists. LTC may try to rebound, though, if momentum changes. It would break back over $100 and aim for resistance levels at $106, $111, and perhaps $119.
LTC RSI is currently at oversold levels
Only two days ago, the Litecoin Relative Strength Index (RSI) was at 57.1; now, it is at 26.7. This sharp decline suggests that there is strong selling pressure on LTC since it has hit oversold territory.
A sharp decline like this frequently indicates panic selling or a strong negative trend, making LTC susceptible to more declines until buyers intervene.
However, as oversold circumstances sometimes result in relief rebounds, an RSI this low also suggests that the asset may be approaching a possible short-term reversal.
The RSI is a momentum indicator that gauges the magnitude of recent price changes and has a range of 0 to 100. While readings below 30 signal oversold situations, where buying opportunities may arise, readings above 70 indicate overbought conditions, when assets are likely to experience selling pressure.
The likelihood of a brief recovery is increased because LTC’s RSI, which is now at 26.7, is far into oversold territory.
However, Litecoin can find it difficult to establish support and prolong its losses before making an effort at a recovery if negative momentum continues and the RSI keeps declining.
Litecoin CMF fell below -0.20
Two days ago, Litecoin’s Chaikin Money Flow (CMF) was 0.03; now, it is -0.21, showing a substantial change in capital flow. Bearish attitude was reinforced earlier when CMF momentarily fell to -0.26, its lowest level since mid-February.
A falling CMF indicates that more money is leaving LTC than entering it, indicating growing selling pressure.
This pattern indicates that investors are removing liquidity from Litecoin, which makes it challenging for the price to maintain any quick recoveries.
CMF analyzes price and volume changes between -1 and 1 to determine buying and selling pressure. While negative numbers imply dispersion and increasing selling pressure, positive values show accumulation, or more money coming into an asset.
With LTC’s CMF now at -0.21, sellers are still in charge, and LTC may have trouble finding support unless purchasing volume picks up.
Capital outflows are approaching severe levels, as seen by the latest decline to -0.26, raising the possibility of more fall until mood changes.
Will Litecoin fall below $90 soon?
The price of Litecoin may test the $92.5 support level, a crucial area that has historically restrained purchasers, if its downward trend persists. LTC may go as low as $80, its lowest price since November 2024, if this level is lost.
Further drops are still possible until buyers intervene to protect support, since momentum indicators such as the RSI and CMF are displaying bearish pressure.
With $106 serving as the first significant resistance mark, LTC might regain momentum and surge above $100 if it reverses its trend.
A test of $111 may result from a breakout over here, and if bullish momentum picks up steam, LTC might rise to $119.
Read more: LITECOIN PRICE PREDICTION
El Salvador speeds up Bitcoin purchases, but IMF remains a challenge
El Salvador bought five Bitcoins today, and according to President Bukele, the nation has no intention of stopping anytime soon. But the government and the IMF negotiated a deal that forbids the public sector from buying Bitcoin on its own volition.
According to some community members, the agreement has an extended time that the general public is unaware of. Otherwise, this arrangement may blow everyone away, along with the $1.4 billion in related loans.
El Salvador keeps buying Bitcoin
El Salvador has grown to be a significant Bitcoin holder after it legalized the cryptocurrency in 2021. But last October, the IMF made an effort to moderate its anti-Bitcoin stance after years of a hostile relationship with global financial institutions.
Despite agreeing to change its laws, El Salvador has kept hoarding the asset ever since. In particular, a provision in the IMF’s technical memorandum of understanding forbids the public sector from voluntarily accumulating Bitcoin.
The agreement also prohibits the issuance of any debt or tokenized securities that are indexed to or denominated in Bitcoin by the public sector.
Nonetheless, as part of a long-term plan to accumulate the commodity, the El Salvadorian government still buys one Bitcoin every day. It further defied this instruction today by purchasing five Bitcoins.
An important community leader, Samson Mow, has been adhering to an agreement El Salvador and the IMF reached in December. The IMF released another commentary today, asserting that El Salvador was prohibited from mining or buying Bitcoin.
“If there is a loophole for continued buying, I didn’t find it in the document. If the plan is to just outright defy the IMF, I don’t think that is good for the additional loans, or to present an image of a serious stable country,” wrote Samson Mow.
President Bukele, however, denied these claims.
“This all stops in April.” “This all stops in June.” “This all stops in December.”
No, it’s not stopping.
If it didn’t stop when the world ostracized us and most “bitcoiners” abandoned us, it won’t stop now, and it won’t stop in the future.
Proof of work > proof of whining https://t.co/9pC0PoY3YQ
— Nayib Bukele (@nayibbukele) March 4, 2025
The nation has many reasons, on the one hand, to resist giving in to the IMF. By establishing a home community and utilizing abundant geothermal energy to establish extensive mining operations, El Salvador has exploited Bitcoin to spearhead larger societal changes.
The nation’s economic independence would be drastically reduced if these initiatives were abandoned.
But what does this assertive approach mean for the IMF deal? El Salvador apparently agreed to cease purchasing Bitcoin in order to obtain loans totaling $1.4 billion. What becomes of that cash or any upcoming trade agreements? Is Bukele’s behavior illegal or not?
Numerous questions remain unanswered. Bukele may be holding onto his outward bullishness until the IMF grants El Salvador a few more months to purchase Bitcoin.
However, these issues are still unresolved, and further regulatory clarification may be required.
