The crypto market experienced a heightened bearish sentiment on Monday, ignited by the impending repayment plan of the now-defunct Mt. Gox exchange. Scheduled to commence next month, this plan involves returning over 140,000 BTC to victims of the notorious 2014 hack. Consequently, Bitcoin’s price plummeted to $60,723, reflecting a loss exceeding 5% within a 24-hour period. This downturn was mirrored by Ether and the broader market, with the CoinDesk 20 Index (CD20) also declining by more than 5%. Bitcoin’s recent descent from above $70,000 has manifested as a double top bearish reversal pattern. Nevertheless, trading volumes in spot and futures markets for Bitcoin and Ether on centralized exchanges have remained significantly subdued compared to the record highs observed in March, according to FalconX. This suggests a lack of investor engagement or conviction in selling, often indicative of a “bear trap.”

Ether Traders Show Optimism Amid Decline

Despite the bearish trend, Ether traders have been actively purchasing bullish options on Deribit in the declining market. Amberdata reports a surge in buying activity for Ether’s September expiry $4,000 call options, as traders anticipate a potential move to new record highs. “Examining the block flows this week, we observe substantial buying interest for the September $4,000 calls,” stated Greg Magadini, director of derivatives at Amberdata, adding that this signifies a bet that “if ETH surpasses $4k, we are likely to test and break out to new all-time highs.”

Also read: Bitcoin Nears $60K Amid Mt. Gox Reimbursement News, Potential Market Impact Less Dire

Japanese Institutional Investors Eye Crypto

Japanese institutional investors are increasingly embracing digital assets, according to a survey by Nomura involving 547 Japanese investment managers. The April survey revealed that over 50% of these managers plan to invest in crypto within the next three years, viewing it as a diversification opportunity. Managers indicated they could allocate between 2% and 5% of assets under management to crypto, with nearly 80% intending to invest over the next year. This shift towards crypto is driven by growing concerns over Japan’s debt burden and the yen’s exchange-rate volatility. Tokyo-listed Metaplanet recently adopted Bitcoin as a reserve asset to hedge against Japan’s fiscal issues. On Monday, the firm announced plans to purchase an additional $6.2 million worth of Bitcoin using proceeds from a debt sale.