Japan’s institutional Bitcoin leap sparks market optimism

• BTC jumped to over $27,000 and has remained there.
• The Bitcoin Adoption Fund launched in Japan sparked this price move.

Bitcoin [BTC] has recently surged to a price of $27,000 following a significant announcement from Japan. In light of this recent news from Japan, what is the overall sentiment in the market?

Read Bitcoin (BTC) Price Prediction 2023-24

Japan gets institutional exposure to Bitcoin

On 19 September, a noteworthy announcement was made by the digital assets subsidiary of the Japanese financial services giant Nomura, known as Laser Digital.

According to the company, they are launching a new fund aimed at offering institutional investors exposure to Bitcoin.

This fund, known as the Bitcoin Adoption Fund, will provide long-term investment opportunities and represents the initial offering in a series of digital asset investment products planned by Laser Digital. 

Additionally, the fund will utilize Komainu, a custody solution jointly operated by Nomura, Ledger, and CoinShares, to safeguard client assets.

How Bitcoin reacted to the development

As per a Santiment report, Bitcoin responded positively to the announcement. The Santiment trend table indicated that BTC quickly surged to the top of the charts when the news was released. Moreover, the Santiment chart illustrated that this development propelled the price of BTC above the $27,000 mark.

The current trend of BTC

Despite a daily timeframe chart showing Bitcoin trading at a loss, it remained above the crucial $27,000 price range. By the close of trading on 19 September, it had gained over 1.6% and was trading at a value exceeding $27,200.

As of this writing, it was priced at around $27,098, experiencing a slight loss of less than 1% in value.

Source: TradingView

Furthermore, any attempt to surpass its short and long Moving Averages (yellow and blue lines), which have acted as resistance levels, has been hindered by the price decline. Nevertheless, Bitcoin still maintained a position above its neutral line, signalling a bullish trend.

Additionally, a glance at Coinglass revealed that BTC continued to exhibit a positive funding rate. This indicated that a majority of traders held expectations for a further increase in the price of BTC and were actively taking long positions.

This optimistic sentiment prevailing in the current market is a noteworthy indicator of positive market sentiment.

How much are 1,10,100 BTCs worth today

Bitcoin could see more positive reactions

Bitcoin’s response to the recent developments in Japan serves as a clear indication of the excitement among traders regarding institutional participation.

This suggests that we may witness more positive reactions if and when the numerous ETF (Exchange-Traded Fund) applications submitted in the United States are approved by the Securities and Exchange Commission.