Bitcoin’s (BTC) price has nearly reached the $65,000 mark during early Tuesday trading hours, reflecting a significant shift in market sentiment. Just last week, the fear and greed index was at a fearful 27; now, it has surged to a greedy 65.
Why Bitcoin’s Price Recovered?
The recent uptick in Bitcoin’s price coincides with strategic market activities. For example, the Japanese firm Metaplanet announced the purchase of 21.877 BTC, worth approximately $1.2 million, boosting their total Bitcoin holdings to 225.611 BTC. This acquisition aligns with Metaplanet’s strategy to expand its Bitcoin reserves, supported by a $6.2 million bond with a 0.5% annual interest rate, maturing on June 25, 2025.
Analysts at 10X Market have pinpointed several reasons for Bitcoin’s price movements, noting that Bitcoin’s value can shift quickly based on new information. Since last Friday, Bitcoin has risen by 10%, moving from an oversold rally to a clear breakout from a downward trend. The sentiment shifted from bearish to bullish once the price surpassed the key level of $61,133.
Market Inflows and Bullish Endorsements
Key factors contributing to Bitcoin’s strong performance include significant market inflows. After four weeks of net outflows totaling $8 billion, the market welcomed $3.3 billion in inflows last week, mainly from futures, stablecoins, and Bitcoin Spot ETFs. Notably, Tether minted $1 billion in USDT, indicating a positive trend.
Bitcoin Spot ETFs like BlackRock’s iShares Bitcoin Trust and Ark 21 Shares Bitcoin ETF experienced substantial inflows, with each receiving over $117 million on Monday. This suggests a strong retail interest, which appears more sustained than before.
External endorsements and speculative activities have also energized the market. BlackRock CEO Larry Fink recently expressed a bullish outlook on Bitcoin, significantly boosting investor confidence. Additionally, the potential launch of an Ethereum ETF, possibly by July 23 if approved, adds to the positive sentiment.
Political Developments and Speculation
Rumors of a softer regulatory approach towards cryptocurrencies in China and a delay in South Korea’s crypto tax, now pushed to 2028, are further stirring the market. Both developments could energize trading activities.
Political developments, notably the increased likelihood of Donald Trump winning the election following an assassination attempt, have also influenced market sentiments. Avinash Shekhar, Co-Founder of the crypto derivatives trading platform Pi42, echoes 10X Market’s analysis.
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“Bitcoin’s price surged past $63,000 for the first time in over two weeks, driven by recent market developments. The total crypto market cap reclaimed $2.4 trillion as altcoins followed BTC’s upward trend. The weekend saw further gains, possibly influenced by the failed assassination attempt on pro-crypto US Presidential candidate Donald Trump,” Shekhar told BeInCrypto.
Conclusion
Amidst these developments, some believe that Bitcoin’s price has bottomed. However, after hitting $65,000 earlier today, Bitcoin is changing hands around $63,000 as of this writing.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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