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Bitcoin rose more than 5% during the day, is the bull market back?

Bitcoin rose more than 5% during the day, is the bull market back?

BlockBeats2024/07/16 04:31
By:BlockBeats

This morning, Bitcoin rose above $64,500, up 5.76% in 24 hours, seemingly ending a month-long decline. The total market value of cryptocurrencies on the entire network also rebounded to $2.49 trillion, up 6.2% in 24 hours, with a 24-hour trading volume of over $106.8 billion.


Bitcoin rose more than 5% during the day, is the bull market back? image 0


All signs show that the crypto market has stopped falling.


The end of seller pressure


The previous downturn was largely due to the German government's sale of 50,000 bitcoins. The large amount of selling pressure and panic caused Bitcoin to fall by nearly 20% in the past month. Last Friday, the German government sent the last 3,846 bitcoins to the trading platform, and the bitcoins in its address were completely exhausted.


On July 15, Bitfinex released a report saying that a positive market driver is that the almost continuous selling pressure of Bitcoin from long-term holders (LTHs) seems to have subsided, and the supply of long-term holders has stabilized from 16.2 million Bitcoins in January to about 14.8 million Bitcoins. The stability of supply indicates a reduction in selling pressure.


Bitfinex analyzed that the market may be approaching a balance point, and the upward trend over the weekend indicates that a rebound is possible in the short term. After the German government's selling panic ended, the US election added another stimulus to the recovery of the crypto market.


Trump was assassinated, and the success rate of the campaign has greatly increased


Last weekend, Trump was attacked while speaking at a campaign rally and injured his right ear. While being covered by security, Trump raised his right fist to the camera and shouted "FIGHT" to inspire people. This sudden incident not only caused a surge in Trump-related concept meme coins, but also stimulated the entire crypto market.


The crypto community generally believes that Trump's administration will be conducive to the development of the crypto industry. After the incident, the prediction market Polymarket predicted that the probability of Trump winning the 2024 US presidential election has risen to 70%, setting a new record high.


According to The Block, Trump has appointed Ohio Senator J.D. Vance as the Republican vice presidential candidate today. Vance disclosed in his annual report submitted last year that in 2022, he already owned between $100,001 and $250,000 worth of Bitcoin. Vance is one of the lawmakers who supports cryptocurrency and is involved in drafting a bill that will reform the way US financial regulators oversee digital assets.


Today, Coinbase, Ripple, and a16z also plan to send representatives to the Republican National Convention (RNC), and will later attend the Democratic National Convention (DNC). All three companies are members of the Fairshake Super PAC, which raised $177.9 million and spent $70.9 million during the 2024 election cycle.


Bitcoin ETF has net inflows for 7 consecutive days


Looking back on the past week, it will be found that traditional financial institutions have begun to "bottom-fish". On July 15, the inflow of US Bitcoin ETFs was US$293 million (4,612 BTC), and it has achieved 7 consecutive days of net inflows.


Matrixport also released a latest report saying that the spot Bitcoin ETF ended a week of trading with an inflow of US$310 million last Friday, the highest level in more than a month. Previously, ETF flows were closely tied to inflation data, and with last week's CPI data weaker than expected, ETF inflows are likely to continue.


A week ago, JPMorgan said in a research note that the crypto market is expected to rebound starting in August. JPMorgan analyzed that Bitcoin reserves on major trading platforms have declined over the past month due to the liquidation of creditors of Mt. Gox and Gemini and the German government's sale of cryptocurrencies seized from criminal activities, causing the bank to lower its year-to-date estimate of net flows in the crypto market from $12 billion to $8 billion. The report noted that liquidations should end this month and the market will recover from August.


It now appears that the recovery has begun and market sentiment is being reignited.



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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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