Markets
Bitcoin Price Surges to $65,000: Analysts Explain Rally
Bitcoin (BTC) price nearly hit the $65,000 mark during early trading on Tuesday. This notable surge reflects a significant shift in market sentiment.
For example, last week the fear and greed index was at a frightening 27; now it has risen to a greedy 65.
Why did Bitcoin price recover?
The recent increase coincides with strategic market activities. For example, today, the Japanese company Metaplanet announced the purchase of 21,877 BTC, worth approximately US$1.2 million.
This acquisition increases Metaplanet’s total Bitcoin holdings to 225,611 BTC, valued at approximately $14.17 million. Additionally, Metaplanet recently issued a $6.2 million bond to expand its Bitcoin reserves. The bond, which carries an annual interest rate of 0.5%, matures on June 25, 2025.
Read more: Who owns the most Bitcoin in 2024?
10X Market analysts have located several reasons for Bitcoin’s price movements. They note that Bitcoin’s value can change rapidly based on new information.
Since last Friday, Bitcoin has surged 10%, moving from an oversold rally to a clear breakout of a downtrend. Sentiment shifted from bearish to bullish as the price broke above the key $61,133 level.
Key factors contributing to Bitcoin’s strong performance include significant inflows into the market. After four weeks of net outflows totaling $8 billion, the market received $3.3 billion in inflows last week, mostly from futuresstablecoins and Bitcoin Spot ETFs. Notably, Tether minted $1 billion worth of USDT, indicating a positive trend.
Additionally, Bitcoin Spot ETFs like BlackRock iShares Bitcoin Investment Fund and Ark 21 Shares Bitcoin ETF have seen substantial inflows, with each receiving over $117 million on Monday. This suggests strong retail interest that appears more sustained than before.
Bitcoin ETF Net Inflows. Source: SosoValue
External support and speculative activities also energized the market. Larry Fink, CEO of BlackRock recently expressed a bullish outlook on Bitcoin, significantly boosting investor confidence. Additionally, the potential launch of a Ethereum ETF, possibly by July 23 if approved, it increases positive sentiment.
Rumors of a Softer regulatory approach towards cryptocurrencies in China and a delay in South Korea’s crypto tax, now postponed until 2028, are further stirring up the market. Both developments could further energize trading activity.
Political developments, notably the increased likelihood of Donald Trump wins election after assassination attemptalso influenced market sentiments.
Avinash Shekhar, co-founder of cryptocurrency derivatives trading platform Pi42, agrees with 10X Market’s analysis.
“Bitcoin price surpassed $63,000 for the first time in over two weeks, buoyed by recent market developments. 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 presidential candidate Donald Trump,” Shekhar told BeInCrypto.
Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030
Amid these developments, some believe that the price of Bitcoin has bottomed out. However, after hitting $65,000 earlier today, Bitcoin is trading at around $63,000 at the time of writing.
“Bitcoin ends its correction It was the deepest correction of the cycle at -25.6% and the third longest at 42 days,” Rekt Capital he said.
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