Altcoin
Japanese Gaming Powerhouse Gumi Snaps Up 1 Billion Yen In BTC
Two large corporate entities are pouring big money in cryptocurrencies, and the corporate surge into Bitcoin doesn’t appear to be slowing down. With its bold 1 billion yen ($6.7 million) Bitcoin acquisition, Japanese game producer Gumi is creating waves. Meanwhile, KULR Technology Group is also growing its already considerable cryptocurrency holdings.
The way traditional businesses perceive digital assets has changed significantly as a result of this spike in institutional interest.
Japanese Mobile Gaming Publisher Gumi (3903, mkt cap $150M) announces plan to buy 1b Yen Worth of Bitcoin.
Becomes first listed company in Japan (world?) to participate in Bitcoin staking protocol Babylon as a validator. pic.twitter.com/37nhunaIiX
— matthew sigel, recovering CFA (@matthew_sigel) February 11, 2025
Japanese Gaming Giant Makes Historic Leap In Crypto
Gumi has revealed its intentions to stake Bitcoin via the Babylon protocol, a bold move that is drawing attention in the Japanese business community. The company is using Bitcoin rather than merely purchasing it.
Gumi will systematically buy 1 billion yen worth of Bitcoin between February and May 2025, becoming the first Japanese publicly traded entity to engage in crypto staking. This calculated move demonstrates how corporate crypto efforts are becoming more complex.
Storage To Yield: Development Of Corporate Bitcoin Strategy
The days of companies simply holding Bitcoin in their treasuries are fading fast. This new strategy is best demonstrated by KULR Technology Group, which has increased its Bitcoin holdings to an astounding 610 tokens, or over $60 million.
The company’s bold plan to invest up to 90% of its excess cash reserves in Bitcoin by 2024 has paid off handsomely. The company cautions investors against using this number as a direct measure of financial performance, but its reported 167% BTC Yield year-to-date offers a compelling story of achievement.
Crypto Renaissance In Japan
One could describe the current state of affairs in the Land of the Rising Sun as a corporate crypto awakening. Following Gumi’s disclosure, Metaplanet, often known as the “Japanese MicroStrategy,” has revealed a bold mission to buy 21,000 Bitcoin by 2026.
The business isn’t thinking small; it currently has 1,761 BTC worth 27 billion yen, and intends to issue a staggering 116.65 billion yen worth of shares. This would be the biggest equity offering for Bitcoin in Asia to date.
Beyond Yield Generation
The transition from basic Bitcoin ownership to complex yield-generating schemes is what makes these developments so intriguing. Businesses are finding new ways to increase the performance of their cryptocurrency holdings using platforms like Babylon.
The straightforward “buy and hold” approach to corporate Bitcoin adoption is evolving. Businesses are currently looking into a number of strategies to increase profits while preserving their long-term exposure to the possible growth of the world’s top crypto asset.
Featured image from Gemini Imagen, chart from TradingView
The long-awaited US CPI inflation for January comes in hotter at 3% on a year-over-year (YoY) basis, up from the 2.9% noted in the prior month. This hotter-than-anticipated inflation figure has sparked market concerns over a potential crypto market crash ahead. Notably, digital assets have faced immense volatility lately due to macroeconomic concerns and the Fed’s hawkish stance which has weighed on the investors’ sentiment.
US CPI Inflation Comes In At 3%
In the latest development, the Labor Department reported that the US CPI inflation comes in at 3%, up from the prior month’s reading of 2.9%. On a monthly basis, the inflation rises to 0.5% in January, up from the 0.4% spike noted in the prior month. Notably, both these data come in hotter than the market expectations.
Simultaneously, the Core CPI, which excludes the food and energy prices, came in at 0.4% last month, up from the prior month’s figure of 0.2%. On the other hand, the core US CPI on a YoY basis soars to 3.3% as compared to December’s figure of 3.2%. Wall Street was expecting the Core CPI to come in at 3.1% on a YoY basis and 0.3% on a monthly basis.
These hotter-than-expected figures have added pressure on the investors’ sentiment who were already trading cautiously due to broader macroeconomic concerns. Notably, the Federal Reserve has provided a hawkish tone recently with their rate cut plans, which has already dampened market momentum.
Now, this spike in US CPI data, while the market was expecting the cooling inflation figures, has further led investors to panic. Besides, it would also provide more space for the central bank to move ahead with its hawkish plan.
Crypto Market Retreat After US CPI Release
Following the US CPI release by the Labor Department, the crypto market faces a massive selloff. The global crypto market cap fell more than 3.3% to $3.1 trillion. BTC price fell sharply by around 3% to $94,000 from the $96,488 level within minutes after the release.
This indicates how this gloomy data has impacted the market sentiment. Notably, the inflation woes have long impacted the market sentiment, forcing many to stay on the sideline. However, with the cooling US Job data from last week, the market was expecting cooling inflation figures this week.
Meanwhile, the CME FedWatch Tool showed that the US Federal Reserve is likely to keep the interest rates unchanged at their next gathering. Furthermore, Fed Chair Jerome Powell also hinted recently that the central bank would move very cautiously with their policy rate plans, which has dampened the market sentiment.
Traders have also moved their projections about a Fed rate cut in October to December, a development that further presents a bearish outlook for the market since investors are less likely to allocate more capital to cryptocurrencies with no rate cut in sight. However, despite the Fed’s reluctance, US President Donald Trump continues to pressure the Central Bank to lower rates, although it remains to be seen if Powell and the committee will listen.
What’s Next For The Crypto Market?
The crypto market has remained volatile lately due to the absence of any positive catalysts in the market. Besides, this recent US CPI data has further weighed on the traders’ sentiment, indicating further declines ahead. Notably, the US 10-year bond yield rose 2.05% to 4.630 following the release. On the other hand, the US Dollar Index was up 0.42% to $108.290.
Having said that, it appears that the selling pressure is likely to continue ahead. However, the market will now keep close track of the upcoming US PPI inflation data scheduled for tomorrow. If the PPI also comes in tandem with the US CPI, it might trigger a potential crypto market crash ahead.
Besides, market experts also expect a downturn momentum ahead for the crypto market. In a recent X post, analyst Mister Crypto highlighted the recent US CPI release and said that this is “Bearish For CRYPTO.”
Rupam Roy
Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam’s expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news.
Rupam’s career is characterized by a deep passion for unraveling the complexities of finance and delivering impactful stories that resonate with a diverse audience.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Bitwise CIO Matt Hougan has broken silence on the retail sentiment in the cryptocurrency market that has remained weak despite growing institutional confidence. The Bitwise CIO believes the market is positioned for long-term growth, with institutional investors increasing their exposure.
While Bitcoin price has performed well, altcoins have struggled, leading to cautious retail sentiment. However, crypto analyst have pointed out that an altcoin Golden Cross has just formed again, a pattern historically associated with an altcoin season rally.
Institutional Investors Show Strong Confidence in Crypto
Institutional investment in cryptocurrency has reached record levels. Bitwise CIO Matt Hougan has highlighted that ETFs and corporations have purchased approximately 100,000 BTC this year, while only 18,000 BTC have been mined. The increasing demand has contributed to Bitcoin price stability and long-term growth potential.
“From a risk-adjusted perspective, this may be the best time in history to invest in crypto,” Matt Hougan stated. He noted that the regulatory environment has improved, allowing large financial firms to participate in the crypto ecosystem with more confidence.
Government support for stablecoins and blockchain innovation has also encouraged institutional adoption. Bitwise CIO believes this shift will extend beyond Bitcoin and eventually drive an altcoin rally as the broader crypto ecosystem expands.
Retail Investors Remain Cautious as Altcoins Struggle
Despite Bitcoin price gains, retail sentiment remains uncertain. Many retail investors prefer altcoins, and their poor performance has led to pessimism. While Bitcoin price has increased 95% over the past year, Ethereum has only risen 2%, and several smaller assets have posted negative returns.
A report from Bitwise’s proprietary crypto sentiment index shows that retail sentiment is near historic lows. Bitwise CIO explained that the absence of an altcoin rally has contributed to this cautious outlook.
“Retail investors typically look for high-growth opportunities, and without a strong altcoin rally, sentiment has remained weak,” he said.
However, market analysts suggest that retail sentiment often lags behind institutional trends. Crypto analyst Lofty, siding with Bitwise CIO has pointed out that the altcoin golden cross has just formed again, a technical indicator that previously signaled major altcoin rallies.
Bitwise CIO Predicts Altcoin Rally
Bitwise CIO believes that an altcoin rally is approaching as institutional adoption increases and regulatory clarity improves. Many altcoins have faced legal uncertainty in recent years, which has slowed adoption. However, recent regulatory developments have made the landscape more stable.
“The best developers and the largest institutions now feel comfortable building in crypto,” Bitwise CIO Matt Hougan said. He pointed to the record growth of stablecoins and the rise of tokenization projects like Ondo Finance as early signs of altcoin adoption accelerating.
Crypto analyst Lofty’s observation of the altcoin golden cross suggests that the market is aligning with previous altcoin rally cycles. Analysts expect capital rotation from Bitcoin into altcoins, which historically occurs when Bitcoin dominance reaches a peak.
Bitcoin Price Stability and Market Outlook
Bitcoin price remains the dominant factor in crypto market movements. Following a hotter-than-expected CPI report, Bitcoin price saw a brief 1.9% decline, trading at $95,340 as of February 11, 2025. However, institutional demand continues to support prices, making further long-term growth likely.
Meanwhile, the total altcoin market cap declined by $234 billion in two weeks, marking one of the largest downturns in recent history. However, Bitwise CIO sees this as an opportunity rather than a long-term setback.
“Altcoin adoption is growing, and the structural changes happening today will drive the next major altcoin rally,” Bitwise CIO Matt Hougan stated. He noted that upcoming FTX repayments, expected to inject $18 billion in liquidity, could fuel an altcoin rally as capital re-enters the market.
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Crypto analyst Ali Martinez has identified critical resistance levels that could determine whether Binance Coin (BNB) continues its upward trajectory toward $800. His analysis highlights three major simple moving averages (SMA)—the 50, 100, and 200 SMA—that currently act as strong barriers to further price growth. Additionally, he points to the 0.382 Fibonacci retracement level, a historically significant resistance zone where price reversals have occurred.
Key Resistance Levels That Could Drive Binance Coin (BNB) Price Higher
According to analyst Ali Martinez, BNB price is facing resistance at key technical levels that must be broken to sustain its upward momentum. The 50, 100, and 200 simple moving averages (SMA) serve as strong resistance zones. These moving averages have historically prevented Binance Coin price from advancing further, acting as key decision points.
Martinez also highlights the 0.382 Fibonacci retracement level, which aligns with past resistance zones where BNB price has struggled to break through. This level has often led to price pullbacks, making it a crucial area to monitor. If BNB manages to break above this resistance, the asset could experience a stronger push toward higher price targets.
Further adding to these challenges, the TD Sequential indicator reveals resistance trendlines and risk lines that have previously signaled trend reversals. Binance Coin needs to break past these levels to avoid a pullback before any further upside movement.
Meanwhile, Binance and the U.S. SEC recently filed a joint motion to pause their legal dispute for 60 days. This development has reduced uncertainty around Binance, providing a positive catalyst for BNB price. Binance also unveiled its 2025 roadmap, outlining plans to integrate artificial intelligence and improve transaction speeds, further supporting the bullish outlook for BNB.
Binance Coin Gains Despite Crypto Market Downturn
Despite the wider crypto market downturn, BNB has maintained its crypto rally, gaining over the past 24 hours. While Bitcoin and Ethereum dropped by 1.5% and 4% in the last 7 days respectively, BNB has gained over 6% in 24 hours and 17% over the past week.
The recent increase in BNB price comes amid rising U.S. inflation data. The Consumer Price Index (CPI) report showed a 3% year-over-year increase in January, exceeding economists’ expectations. This inflation spike has impacted major cryptocurrencies, leading to declines in Bitcoin and other assets.
However, BNB has remained resilient, continuing its crypto rally despite market uncertainty.
On-Chain Growth and Binance Developments Boost BNB
Nansen analyst Aurelie Barthere has pointed to strong on-chain activity on Binance Smart Chain (BSC) as a key driver of BNB price gains. BSC’s network fees surged 114% in the past week, contrasting with negative growth seen on other blockchains. This increase in network activity suggests growing demand for transactions on the Binance ecosystem.
Moreover, a recent CoinGape report highlighted that Binance coin social media mentions hit an eight-month high amid the TST memecoin rumors. Despite Changpeng Zhao’s denial, the controversy fueled market excitement, driving BNB price surge.
Martinez emphasized that overcoming these resistance levels could set the stage for a strong breakout. If BNB price successfully moves past the 50, 100, and 200 SMA, along with the 0.382 Fibonacci retracement level, it could signal the start of a crypto rally toward the $800 target.
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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