Strategy chair Michael Saylor has alluded to his company’s next Bitcoin purchase amid another market downturn late Sunday, which some analysts attribute to the Bank of Japan’s influence.
Bitcoin (BTC) dipped to a two-week low of $87,600 on Coinbase during late trading Sunday, according to TradingView. The sudden Sunday drop has become increasingly common over recent weeks.
This marks the lowest price since Dec. 2, when the asset was recovering from a dip to $84,000. However, it had bounced back to over $89,000 as of this report.
Saylor shares more “orange dots” hinting at Bitcoin purchase
In the meantime, Michael Saylor hinted at a forthcoming Bitcoin acquisition, posting “Back to More Orange Dots” on X along with a related portfolio chart on Sunday.
Strategy’s latest Bitcoin buy, its largest since late July, was 10,624 BTC on Dec. 12, according to SaylorTracker.
The firm presently holds 660,624 BTC valued at approximately $58.5 billion at current rates. Strategy’s average cost per coin is $74,696, meaning they remain up on their investments, for now.
Analysts attribute selling pressure to Bank of Japan
Some analysts believe the heightened selling pressure is linked to an anticipated interest rate decision by Japan’s central bank.
“People are severely underestimating what Japan is about to do to Bitcoin,” noted analyst “NoLimit” on Sunday. They emphasized that prior rate increases in Japan often resulted in major Bitcoin downturns, given Japan’s status as the largest holder of US debt.
Polymarket’s prediction platform suggests there’s a 98% chance the Bank of Japan will raise rates by 0.25% this Friday.
Related: Rising Japanese bond yields could disrupt global carry trade, crypto
Justin d’Anethan, head of research at private market advisory Arctic Digital, told Cointelegraph that although prices have bounced back from November’s lows, the drop to $88,000 “feels like a defeat.”
“In Japan, rate expectations have created fears of yet another carry trade unwind, which may impact risk assets and lead macro funds and day-traders to pull back, anticipating further declines.”
Markets may have already factored it in
Analyst “Sykodelic” mentioned that Japan’s decision was already anticipated and therefore priced in. “Markets are forward-thinking and move in anticipation of events rather than waiting for them to unfold,” they argued.
“We expect prices to remain within a range, particularly in the $80K to $100K zone, as traders await a catalyst that may not materialize,” d’Anethan predicted.
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