Bitcoin Surges to $65,000: Analysts Discuss Factors Pushing Price Recovery
beincrypto.com 16 July 2024 08:44, UTC Bitcoin’s (BTC) price nearly reached the $65,000 mark during early Tuesday trading hours. This notable surge reflects a significant shift in market sentiment.
For instance, last week, the fear and greed index was at a fearful 27; now, it’s surged to a greedy 65.
Why Bitcoin’s Price Recovered?
The recent uptick coincides with strategic market activities. For instance, today, the Japanese firm Metaplanet announced the purchase of 21.877 BTC, worth approximately $1.2 million.
This acquisition boosts Metaplanet’s total Bitcoin holdings to 225.611 BTC, valued at around $14.17 million. Furthermore, Metaplanet recently issued a $6.2 million bond to expand its Bitcoin reserves. The bond, with a 0.5% annual interest rate, matures on June 25, 2025.
Read more: Who Owns the Most Bitcoin in 2024?
Analysts at 10X Market have pinpointed several reasons for Bitcoin’s price movements. They note that Bitcoin’s value can shift quickly based on new information.
From last Friday, Bitcoin rose 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.
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.
Moreover, 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.
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 further 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 crypto derivatives trading platform Pi42, echoes 10X Market’s analysis.
“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.
Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030
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.
“Bitcoin ends its correction It was the deepest correction in the cycle at -25.6% and the third-longest at 42 days,” Rekt Capital said.
