In recent days, Bitcoin continues its downtrend, particularly following options expiry. Japanese company Convano announced a plan to accumulate Bitcoin worth $3 billion despite current market conditions.
Convano's New Bitcoin Acquisition Strategy
As of the last check, the Bitcoin price has decreased by over 5.4% in the past week and is down 13% from this year's all-time high. Uncertainty around the Federal Reserve and rising cryptocurrency liquidations triggered a recent crash. In particular, Convano, a small Japanese nail salon, has planned a Bitcoin acquisition strategy worth $3 billion to buy 21,000 BTC, while its market capitalization stands at just $386 million.
Bitcoin Technical Analysis
The daily chart shows that Bitcoin's price has crashed after peaking at $124,200. Bitcoin 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. Additionally, a double-top pattern has formed, and prices dipped below the neckline at $111,834. This could suggest a further fall to $100,000 in the coming days.
Market and Trends of Bitcoin Companies
The risk for Convano lies in the deteriorating performance of companies holding Bitcoin. Strategy's stocks have plunged over 25% from their 2024 high, while Metaplanet has plummeted over 50%. Other major companies like GameStop and Trump Media have also experienced declines. According to BitcoinTreasuries, over 100 companies are holding a total of more than 989,926 Bitcoins.
Bitcoin remains under pressure due to market uncertainties and price declines. Although Convano is attempting to establish itself in this sector, various risk factors could influence the success of such strategies.
