If you’re keeping an eye on Bitcoin, you’ve probably noticed its latest climb. At the time of writing, Bitcoin is trading around $69,500, marking a 3% increase in the last 24 hours. A little earlier, the price shortly touched the $70,000 mark. It seems like the bulls are back in control as we start a new week. What can we expect?
Why is Bitcoin Rising?
The big question is, why is Bitcoin rising today? One possible reason is the announcement by Donald Trump about a Bitcoin Strategic Reserve for the United States. Over the past weekend, Trump announced during the largest Bitcoin conference in the world that the 200,000 Bitcoin seized by the U.S. government in the past would not be sold under his administration. “You do not sell your Bitcoin,” Trump stated on stage in Nashville. With Trump showing interest in Bitcoin, it seems like we might have a potential president who considers Bitcoin a crucial issue, which makes sense as more votes can be garnered with this stance nowadays.
Bitcoin’s Highest Since June
This is the highest Bitcoin has traded since June 13, when it hit $70,000 but faced resistance and retreated. This time, with the momentum from the Bitcoin 2024 conference, where two presidential candidates, Donald Trump and John F. Kennedy Jr., spoke in favor of Bitcoin, things are looking more positive.
We are currently just shy of a new all-time high price, and it would therefore not be surprising to see that happen in the coming week already.
Inflation and Interest Rates
In the United States, the Personal Consumption Expenditures index rose just 0.1% in June, increasing confidence in an interest rate cut in September as inflation appears to be coming under control. There is also a Federal Reserve meeting on July 31, where an interest rate announcement is expected.
More Reasons for Optimism
There are several reasons not to sell your Bitcoin right now. Alongside the potential interest rate cuts and Trump’s involvement, there’s the rollout of spot Bitcoin ETFs by major financial institutions like Morgan Stanley and Wells Fargo. These ETFs, expected to become available on general trading platforms, could significantly boost Bitcoin investments. Existing Bitcoin ETFs are seeing consistently high daily inflows as well.
Currently, we are in a Bitcoin bull market cycle, potentially halfway through. Historical data suggests that Bitcoin could double, or even increase fourfold to sixfold in value over the next year and a half. Additionally, the nearing conclusion of the Mt. Gox repayment process, expected within four weeks, could reduce market uncertainty and positively impact Bitcoin’s price.
Michael Dell’s Interest in Bitcoin
Moreover, Michael Dell, the CEO of Dell Incorporated, has shown recent interest in Bitcoin. His public fascination with Bitcoin, given his estimated net worth of around $100 billion, sends a strong positive signal to investors. If someone with Dell’s financial expertise sees potential in Bitcoin, it’s worth paying attention to.
Last week, Axel Adler from CryptoQuant said that the only resistance left for Bitcoin was at $67,100, is the average purchase price of short-term holders. Breaking through this barrier would be regarded as a bullish sentiment, he said. The fact that we have broken this milestone, could lead to a further upward rally for Bitcoin.
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