Bitcoin has gained round 17% since final weekend, which equates to round $9,000 over the previous seven days or so.
The asset was buying and selling beneath $60,000 final weekend however surged to a six-week excessive above $68,000 on July 22.
What has been driving market momentum for the previous week, and can it proceed?
Bitcoin Is Again
On July 22, business analysis agency 10x Analysis supplied a variety of causes for the massive worth pump. Firstly, there was a shift in market sentiment when BTC broke above a key degree at $61,133, altering the narrative from bearish to bullish.
The evaluation added that retail buying and selling had been driving weekend rallies with retail buyers, which fueled weekend features and optimistic momentum carrying into Monday.
This has been seen this weekend, with BTC gaining greater than 6% since Friday. The asset hit a multi-week excessive of $68,480 throughout Monday morning buying and selling in Asia.
Moreover, after 4 weeks of web liquidity outflows totaling $8 billion, crypto markets noticed $3.3 billion in inflows final week.
“This inflow, primarily from futures, stablecoins, and spot Bitcoin ETFs, marked a optimistic development change.”
Final week, spot Bitcoin ETFs racked up round $1.24 billion in inflows over 5 buying and selling days, as reported by CryptoPotato.
10 Causes Why #Bitcoin Surged 10%
From Monday July 15
👇1-12) Usually swayed by altering narratives, rumors, and hypothesis, Bitcoin can quickly alter its worth primarily based on new info. Since this previous Friday, Bitcoin has surged by a major 10%. What initially appeared…
— 10x Analysis (@10x_Research) July 21, 2024
Spot Ethereum ETF hype has additionally contributed to market features, as all indications are that they’re set to start buying and selling on July 23. Nevertheless, ETH costs have solely managed to realize 4.5% over the previous week, lagging behind Bitcoin’s.
There have additionally been rumors suggesting that China may undertake a extra favorable stance on crypto, with Hong Kong’s guidelines serving as a take a look at, the analyst acknowledged.
Moreover, markets in South Korea have been boosted by a proposed postponement of crypto taxation till 2028, spurring speculative buying and selling.
Decrease-than-expected CPI inflation information final week “set a flooring for Bitcoin costs following a 20% peak-to-trough decline,” they added. This week will see PCE inflation reviews launched which may present additional bullish momentum.
U.S. politics have additionally been influential, with a failed assassination try on Donald Trump and President Joe Biden stepping down from the election race additional bolstering crypto market sentiment.
Bullish Week Forward?
On July 22, head of analysis on the agency, Markus Thielen, mentioned that this week may see extra momentum.
“Rumors are rife that the SEC could settle a significant case, and former President Trump is about to ship a extremely anticipated speech in Nashville.”
There’s hypothesis that Trump will announce BTC as a strategic reserve asset, “which may set off a parabolic rise in Bitcoin’s worth.”
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