Bitcoin
Bitcoin Surpasses $70K After Trump’s Comments in Nashville
Bitcoin hit a two-month high as bullish sentiment took hold of the cryptocurrency, and capital markets pegging suggested a greater appetite for risk assets.
Bitcoin (BTC) hit $70,000 on July 27 for the first time since mid-May. The asset posted gains alongside the broader cryptocurrency market, which rose by over 2.6% and showed signs of a steady uptrend in the market.
Since last week, investors have been filing claims for Bitcoin and other digital assets as bearish momentum has waned. According to CoinShares, BTC products received $519 million in capital between July 22 and July 26. Bitcoin inflows this month have surpassed $3.6 billion, driven primarily by U.S. spot BTC exchange-traded funds. This comes despite a staggered start to the month.
July has historically been a positive month for BTC, and this year is no different. BTC has jumped more than 15% in the last 30 days and boasts over $19 billion in inflows year to date, a new record.
BTC 24-hour chart for July 29 | Source: crypto.news
Bitcoin Rally or Another Scam?
Still, there are questions about whether this is a sustained rally or another modest market recovery. Bitget Research chief analyst Ryan Lee said market sentiment is relatively bullish due to comments from former President Donald Trump and Senator Cynthia Lummis.
Trump and Lummis have individually announced plans to create a national strategic reserve of BTC. Lummis proposed that the US Treasury buys another million BTC, and Trump promised to stop all government liquidation of Bitcoin.
Lee noted that the U.S. capital markets tie-up could also allow BTC to attract even more investor demand. Seven major U.S. tech giants are set to release financial reports this week.
Positive data could boost Nasdaq’s weekly numbers and drive capital into assets like BTC. Lee added that widely expected dovish remarks from the Federal Reserve this week could reinforce BTC’s bullish thesis.
Meanwhile, on-chain data showed that BTC balances on cryptocurrency exchanges increased by around 35,000 tokens. The coins were deposited over a two-week period between July 15 and July 28. Users generally, despite the BTC on trading platforms, were looking to sell.
Approximately $2.4 billion worth of BTC deposited on exchanges could induce selling pressure on the asset. It is unclear whether this number includes Mt. Gox refundsanother event that could put pressure on the BTC market price and trigger a possible recovery above all-time highs.