Metaplanet, the Japanese company that has established itself as a prominent corporate adopter of Bitcoin, is starting to experience modest losses on its investments. 

This comes as the cryptocurrency’s price has fallen to its lowest levels in over three months.

Over the past week, Bitcoin has been undergoing a sharp downturn, with weekly losses extending to 18.2%. In fact, today, its price dropped to intra-day lows below $80,000, marking price levels last seen in November 2024.

At press time, Bitcoin was trading at $80,462 after a 6.5% decrease in the past 24 hours. The broader crypto market was also down, with the total market capitalization depreciating by 7.7%.

For Metaplanet, which has an average cost of $81,458 per Bitcoin, these fluctuations spell trouble. According to the latest data from BitcoinTreasuries, Metaplanet is grappling with a 2.0% loss on its Bitcoin investments.

The company currently holds 2,235 BTC, valued at $179.54 million. This represents a substantial 20.9% of the firm’s total market capitalization.

The financial challenges extend beyond its cryptocurrency holdings. Metaplanet’s stock has also taken a notable hit. 

“Metaplanet (3350 JP) is now down 54% since the peak,” BitMex Research noted.

However, BitMex highlighted that Metaplanet’s stock price is still significantly higher than the value of the Bitcoin it holds. Meanwhile, according to Yahoo Finance, Metaplanet shares declined 17.4% today, closing at ¥3,310 (approximately $22).

Despite the dip, Metaplanet has remained steadfast in its commitment to Bitcoin. On February 27, the company issued ¥2 billion (approximately $13.3 million) in zero-interest bonds to purchase Bitcoin. This marked its seventh bond issuance for the same purpose. These bonds are scheduled for redemption on August 26, at face value. 

The move is in line with Metaplanet’s 2025 roadmap. The company aims to accumulate 10,000 Bitcoins by the end of the year.

“The market has recognized Metaplanet as Tokyo’s preeminent Bitcoin company, and we are seizing this momentum to solidify our position as a global leader. Our vision is to lead the Bitcoin renaissance in Japan and emerge as one of the largest corporate Bitcoin holders globally. This plan is our commitment to that future,” Metaplanet’s CEO Simon Gerovich said.

Metaplanet’s ambitious strategy extends beyond 2025, with a target of accumulating 21,000 Bitcoins by the end of 2026. The company calls it the “21 Million Plan.”

This initiative involves the issuance of 21 million shares through moving strike warrants. It represents Asia’s largest-ever equity capital raise for Bitcoin, with a funding target of ¥116.65 billion ($785 million).

Today, approximately $5.79 billion worth of Bitcoin (BTC) and Ethereum (ETH) options are due to expire.

Market watchers are particularly attentive to this event due to its potential to influence short-term trends through the volume of contracts and their notional value. Examining the put-to-call ratios and maximum pain points can provide insights into traders’ expectations and possible market directions.

Insights on Today’s Expiring Bitcoin and Ethereum Options

The notional value of today’s expiring BTC options is $4.68 billion. According to Deribit’s data, these 58,633 expiring Bitcoin options have a put-to-call ratio 0.71. This ratio suggests a prevalence of purchase options (calls) over sales options (puts).

The data also reveals that the maximum pain point for these expiring options is $96,000. The maximum pain point is the price at which the asset will cause the greatest number of holders’ financial losses.

In addition to Bitcoin options, 527,277 Ethereum options contracts are set to expire today. These expiring options have a notional value of $1.109 billion, a put-to-call ratio of 0.52, and a maximum pain point of $3,000.

The number of today’s expiring options is significantly higher than last week. BeInCrypto reported that last week’s options expiry amounted to $2.04 billion, comprising 16,561 BTC and 153,608 ETH contracts.

This notable difference comes as this week’s expiring options are for the month. Notably, many institutional traders and funds trade options monthly rather than weekly. Additionally, large funds and market makers often roll over or close their positions at the end of the month to adjust portfolios.

Market makers and traders also focus on monthly expiries because they provide better liquidity and tighter spreads as they accumulate more open interest over time than weekly expiries.

Ahead of the expiration, options trading tool provider Greeks.live shared its insights into the options market. It observed the overall market sentiment is predominantly bearish, with significant concern about further downside potential.

“Overall Market Sentiment: The group is predominantly bearish with traders watching $82,000 as a critical support level that must hold to maintain the HTF (high timeframe) trend. There is significant concern about the continued downside, with many members discussing the rapid 17% decline over three days and debating whether recent selling is controlled or indicative of a broader market shift,” read the post.

Implication of Today’s Options Expiry on BTC and ETH Prices

Against this backdrop, some traders are reportedly repositioning to call ratio spreads as a more defensive strategy. This move is based on the belief that after this drawdown, Bitcoin price action may become choppy, with the potential for a retest of $88,000 before determining further direction.

Deribit says traders are bracing for more volatility, hedging against declining crypto prices to levels last seen just after election day. The dampened outlook comes following US President Donald Trump’s tariffs against Mexico, Canada, China, and Europe.

As BeInCrypto reported, Trump’s surprise announcement of EU tariffs devastated Bitcoin and the broader crypto market. It remains to be seen how Trump’s tariffs could affect crypto and Bitcoin’s potential in the longer term.

For now, however, the max pain prices for both Bitcoin and Ethereum are well above their respective market values. As of this writing, Bitcoin traded for $79,890, whereas ETH exchanged hands for $2,137.

As the max pain price is well above the spot price, this could incentivize options sellers to push Bitcoin and Ethereum prices higher closer to the pain level.

“With the end of the month approaching, BTC options traders should take note: Max Pain for Feb 28 sits at $98,000, with a massive $5 billion notional value. This means the highest open interest is clustered here, incentivizing market makers to keep BTC close to this price. Expect increased volatility and potential price gravitation toward this level,” altcoin options exchange PowerTrade stated.

The so-called ‘Trump Trade’ faces intense scrutiny as Bitcoin (BTC), Tesla (TSLA), and the US dollar all experience significant declines.

The initial enthusiasm for President Donald Trump’s pro-growth policies has faded, leading to disappointment in the financial markets.

Bitcoin, Tesla, and US Dollar Show Sharp Decline

Bitcoin, which had surged past $100,000 amid optimism for a second Trump administration, has now dropped below $85,310. Market analysis points to a lack of solid support between the $90,000 and $70,000 range, raising concerns about further declines.

The sharp fall comes as traders react to President Donald Trump’s lack of concrete action to ease crypto regulations despite earlier promises. Crypto analyst and influencer Crypto Rover summed up the disappointment on social media.

“Trump promised us a strategic Bitcoin reserve. He gave us a trade war instead” the analyst wrote.

Tesla, often seen as a barometer of the so-called ‘Trump Trade,’ has experienced a steep decline. Its stock, TSLA, is down nearly 40% since its peak following Trump’s election victory. The electric vehicle giant fell almost 4% on February 26 alone. This downswing extended a losing streak that has seen its stock drop 24% for the year.

Investors are increasingly concerned that Tesla is being sidelined by CEO Elon Musk’s focus on federal reforms. Furthermore, Musk’s polarizing political stance has hurt Tesla’s performance in Europe, where sales dropped 45% in January, despite the overall increase in electric vehicle sales in the region by 37%.

Similarly, the US dollar and Treasury yields, which had initially strengthened on expectations of Trump’s economic policies, are now in decline. Analysts cite fears that Trump’s aggressive trade policies—especially his newly announced tariffs—could lead to a resurgence of inflation while simultaneously slowing economic growth.

The Impact of Trump’s Trade War

The Kobeissi Letter, a well-known financial analysis outlet, highlighted the wide-ranging impact of Trump’s aggressive trade stance. The president recently announced sweeping tariffs, including 25% on Canada and Mexico, 25% on the European Union, 10% on China, and a potential 100% tariff on BRICS nations.

These tariffs are expected to raise the cost of goods in the US, with inflation expectations surging and analysts warning that it could double from its recent lows.

“Markets are now pricing in a rebound in inflation as prices on many goods are expected to rise,” observed The Kobeissi Letter.

Meanwhile, one of the most striking trends in financial markets is the sharp divergence between Bitcoin and gold. While gold has surged 10% recently, Bitcoin has dropped 10%, despite historically being viewed as a hedge against economic uncertainty.

Amid the market turmoil, a new study by Dancing Numbers suggests that Trump’s tariff plan could offer significant tax relief to Americans. The study found that replacing income taxes with tariffs on imports could save the average American up to $325,561 in lifetime taxes.

If Trump’s tariff plan eliminates federal income taxes, New Jersey, Connecticut, and New York residents could save $146,160, $149,535, and $136,215 over their lifetimes.

With many Americans struggling under high tax burdens, Trump’s proposal could represent a seismic shift in the country’s financial space. However, skeptics worry that relying solely on tariffs could increase inflation and create new economic challenges.

“This could shake global markets! Volatility is the new normal, and US inflation may stay high—rate cuts? Not so soon,” Jagadish, a user on X, expressed.

Investors remain wary of further volatility as markets adjust to Trump’s policies. The ‘Trump Trade’ is facing its biggest test with mounting inflation concerns and key assets faltering.