Mt Gox pushes Bitcoin below $60k just as Japanese stock rises 400% after crypto purchases

0

Last Updated on 4 July 2024 by CryptoTips.eu

Bitcoin fell below $60k yesterday as the pending repayment of Mt Gox creditors sent shivers through the market. The fact that some $9 billion worth of Bitcoin will be repaid has crypto investors worried for the short term.

At the time of writing, Bitcoin is being traded for $57,500.

A Japanese company has started copying Microstrategy’s business plan several months ago. That plan is actually quite simple: whenever you have surplus money, buy Bitcoin. Investors in Tokyo are very enthusiastic. Ever since the start of 2024, Metaplanet’s stock has risen more than 400%.

Advertentie.

Sushi premium

I briefly touched upon this topic in April: the Japanese Yen has recently fallen to an incredibly low level. This is because of two things: firstly, Japan deals with an again and shrinking population, which has a major impact on the economy. Secondly, the Japanese central bank is very slow to react to global inflation rises, certainly when compared with the Federal Reserve or the ECB.

For both these reasons the local currency, the Japanese Yen, has fallen to a very low level versus the dollar. That’s good for tourism and bad for the Japanese of course. Another effect is that the Bitcoin price expressed in Japanese Yen has skyrocketed. That phenomenon is now called the Bitcoin ‘sushi premium’.

Microstrategy

A Japanese company listed on the stock exchange has taken measures to make sure their currency reserves don’t deflate. Metaplanet has been purchasing Bitcoins with their cash reserves for several months now. That hasn’t harmed their stock price apparently.

Metaplanet shares have risen by more than 400% since the beginning of this year. In the month of May for example, trading in the stock was halted twice after it reached the maximum profit per day (50% as set by local stock exchange authorities).

The company isn’t purchasing the same amount of Bitcoins that Michael Saylor’s company Microstrategy can spend, but it’s clearly good news that more and more global companies are showing interest in crypto.

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
View all posts