A-share digital currency sector rises, Global Infotech hit limit-up

A-share digital currency sector rises, Global Infotech hit limit-up

The A-share digital currency sector has experienced a significant surge in recent days, with Global Infotech hitting its limit-up price. This upward trend can be attributed to a combination of factors, including institutional demand and long-term holder support, as well as strategic Bitcoin accumulations by prominent companies.

Institutional demand has been a key driver of Bitcoin's price appreciation. Eric Trump, a prominent figure in the cryptocurrency space, predicts that Bitcoin could reach $1 million based on accelerating institutional purchases and limited retail adoption. He cited nation-states, major corporations, and wealthy families as major buyers, creating a structural supply squeeze that could sustain Bitcoin's upside [1].

Convano, a Japanese nail salon, has also been actively accumulating Bitcoin. The company aims to purchase 21,000 BTC, equivalent to 0.1% of the total supply, by March 2027. This strategic move is driven by the continuous weakness of the yen against the dollar, which has increased wages and raw material costs. The company's stock has seen substantial gains, rising by over 1414% since the beginning of the year, indicating investor confidence in its Bitcoin strategy [2].

Long-term holder support is another factor contributing to the sector's rise. On-chain data shows that the 6–12 month UTXO band is above 20% dominance, signaling strong conviction among long-term holders. This psychological and supply floor reduces available sell-side liquidity during rallies and pullbacks, making downside moves shallower and recoveries quicker [1].

Despite the bullish narratives, short-term charts show resistance at $110,000, indicating potential consolidation before any new trend extension. Traders and algorithms watch key resistance and momentum indicators, and brief pullbacks or consolidation are normal even during strong accumulation cycles [1].

In conclusion, the A-share digital currency sector's rise can be attributed to institutional demand, long-term holder support, and strategic Bitcoin accumulations by prominent companies. While short-term charts show resistance, the structural supply reduction and strong on-chain indicators suggest that higher prices could be supported over time. Investors should weigh these signals with risk management and time horizon in mind.

References:
[1] https://en.coinotag.com/eric-trump-reiterates-bitcoin-could-reach-1-million-as-institutional-demand-rises-and-long-term-holders-sustain-positions/
[2] https://investorempires.com/japanese-nail-salon-targets-3-b-in-bitcoin-holdings/