Bitcoin’s value has risen approximately 17% in the past week, amounting to a gain of around $9,000 over the last seven days.
The cryptocurrency was priced below $60,000 last weekend but saw a significant surge to peak above $68,000 on July 22.
Let’s explore the factors behind this recent market momentum and contemplate if it will sustain.
Bitcoin Rebounds
On July 22, industry research firm 10x Research highlighted several reasons behind the notable price increase. One key factor was the shift in market sentiment when Bitcoin surpassed a crucial level at $61,133, changing the prevailing bearish outlook to a bullish one.
The analysis also pointed out that weekend rallies were largely influenced by retail traders, leading to gains over the weekend and positive momentum carrying into Monday.
This past weekend saw Bitcoin surge over 6% since Friday, reaching a several-week high of $68,480 during Monday’s Asian trading session.
Moreover, following four weeks of net liquidity outflows amounting to $8 billion, the crypto markets experienced $3.3 billion in inflows last week.
“This inflow, primarily from futures, stablecoins, and spot Bitcoin ETFs, indicated a positive shift in trend.”
Spot Bitcoin ETFs specifically attracted approximately $1.24 billion in inflows over five trading days last week, as per CryptoPotato‘s report.
10 Reasons Why #Bitcoin Surged 10%
From Monday, July 15
👇1-12) Bitcoin’s value can rapidly adjust based on new information. Since last Friday, Bitcoin has surged by 10%. What initially seemed…
— 10x Research (@10x_Research) July 21, 2024
The anticipation surrounding spot Ethereum ETFs also contributed to the market’s gains, with expectations of trading commencement on July 23. However, Ethereum’s prices only rose by 4.5% over the past week, trailing behind Bitcoin’s performance.
Rumors indicating a potentially more favorable stance on crypto from China, with Hong Kong’s regulatory dynamics as a test case, have also influenced market sentiment.
Furthermore, the proposed delay of crypto taxation in South Korea until 2028 has boosted speculative trading activity in local markets.
Additionally, lower-than-expected CPI inflation data last week helped stabilize Bitcoin prices after a 20% decline, and the upcoming release of PCE inflation reports this week could further propel bullish momentum.
The recent developments in U.S. politics, including an unsuccessful assassination attempt on Donald Trump and President Joe Biden withdrawing from the election race, have further enhanced positive sentiment in the crypto market.
Potentially Bullish Outlook
On July 22, Markus Thielen, the head of research at the firm, suggested that the upcoming week could witness continued momentum.
“Speculations are soaring about a potential major case settlement by the SEC, and former President Trump is scheduled to deliver a highly anticipated speech in Nashville.”
There are talks circulating that Trump might declare Bitcoin as a strategic reserve asset, a move that could spark a significant price surge in Bitcoin.
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