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- Metaplanet’s latest announcement supports strong spot demand for BTC.
- A comparison of spot demand versus Bitcoin demand as Open Interest hits new highs amid latest rally.
Japanese company Metaplanet has announced plans to increase its Bitcoin purchases. This comes at a time when the cryptocurrency is seeing renewed demand, hitting new highs above $107,000.
The metaplanet, nicknamed the Japanese microstrategy, has been aggressively buying Bitcoin in 2024. The latest announcement revealed that the company will issue bonds worth 4.5 billion yen.
This issuance aims to raise more capital to buy more BTC.
This development highlights the strong demand for Bitcoin observed in recent days. The same reason behind BTC’s latest push above $107,000.
Robust institutional demand has fueled this momentum, and Metaplanet’s announcement highlights bubbling demand outside the United States.
Demand in the United States also remained strong, as evidenced by positive Bitcoin ETF flows. Total ETF inflows recorded on December 16 were $636.9 million.
Source: Farside.co.uk
The cryptocurrency has so far maintained a trend of continuous positive flows since the beginning of the month. More importantly, it highlights the strong demand for spot currently in the market.
Strong Demand for Bitcoin Spot
Based on Bitcoin ETF flows, it’s clear that spot demand has been quite strong lately. A recent Cryptoquant analysis suggested that spot flows have been dominant in the cryptocurrency’s latest bull run.
Additionally, the analysis suggests that demand for derivatives has slowed slightly. The implication being that the market would be less immune to speculative pullbacks. However, a review of the performance of Bitcoin derivatives revealed a different result.
Bitcoin Futures Open Interest reached $67.19 billion in the last 24 hours, marking a new ATH. This suggests that demand in the derivatives segment played a significant role in the latest rally.
Source: Coinglass
The rise in open interest rates was mainly supported by positive funding rates. Except for a brief surge in negative financing rates between December 14 and 16.
Read Bitcoin (BTC) Price Forecast 2024-2025
The fact that funding rates have remained positive overall suggests that short sellers have been on the sidelines. This will likely help avoid potential losses if prices rise. This may explain why selling pressure was limited as the price increased.
Speaking of which, the number of shorts liquidated on December 16 jumped to $109.075 million. This is the highest number of daily liquidations recorded by Bitcoin in the last seven days.
