Exciting Week in Crypto: Bitcoin Surges
Bitcoin has shown tremendous growth, increasing by around 17% over the past seven days, amounting to nearly $9,000. The asset, which was trading below $60,000 just last weekend, surged to a six-week high surpassing $68,000 by July 22. This sudden uptick has caught the attention of the market. The question on everyone’s minds is: What factors are fueling this surge, and can this positive momentum be sustained?
Bitcoin Finds its Footing
Recent data from industry research firm 10x Research sheds light on the reasons behind Bitcoin’s recent price pump. Some key factors identified include:
- A shift in market sentiment following BTC’s breakthrough above $61,133, turning the narrative from bearish to bullish.
- Increased retail trading during weekends, driven by retail investors, leading to significant gains and positive momentum spilling over to the beginning of the week.
- Continued growth with BTC gaining over 6% since last Friday, hitting a multi-week high of $68,480 during Monday’s trading session in Asia.
- Net liquidity inflows of $3.3 billion into the crypto markets after four consecutive weeks of outflows totaling $8 billion.
Market Influencers
Another contributing factor to the recent market gains has been the hype surrounding spot Ethereum ETFs, which are expected to commence trading on July 23. However, Ethereum prices have only seen a modest increase of 4.5% over the past week, lagging behind Bitcoin’s performance.
Rumors circulating about a positive shift in China’s stance on cryptocurrencies and South Korea’s proposal to delay crypto taxation until 2028 have also fueled speculative trading in these regions.
Furthermore, lower-than-anticipated CPI inflation data last week has provided a support level for Bitcoin prices following a 20% decline, with the upcoming release of PCE inflation reports expected to possibly offer additional positive momentum.
In the realm of U.S. politics, recent events, such as a failed assassination attempt on Donald Trump and President Joe Biden’s withdrawal from the election race, have contributed to a bullish sentiment across the crypto market.
Potential for a Bullish Future?
Markus Thielen, the head of research at 10x Research, has hinted at the possibility of continued momentum in the coming week. Speculations are swirling around potential developments that could further boost the market:
Rumors suggest a possible settlement of a major case by the U.S. Securities and Exchange Commission (SEC), along with former President Trump’s awaited speech in Nashville.
There is buzz that Trump might declare BTC as a strategic reserve asset, a move that could trigger a significant surge in Bitcoin’s price.
Hot Take: Bitcoin’s Meteoric Rise
This recent surge in Bitcoin’s price has been remarkable, driven by a combination of shifting market sentiment, increased retail trading activities, and positive developments in the global regulatory landscape. As we look ahead, the cryptocurrency market is brimming with potential catalysts that could further propel Bitcoin’s growth.
Sources:
1. [10x Research Twitter](https://twitter.com/10x_Research/status/1814816295193657584?ref_src=twsrc%5Etfw)
2. [Markus Thielen Twitter](https://x.com/10x_Research/status/1815172275634839598)
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