Bitcoin breaks $70k after Trump’s Nashville remarks

Bitcoin hit a two-month high as bullish sentiment for the cryptocurrency grew and the capital markets link signaled a greater appetite for riskier assets.

Bitcoin (BTC) reached $70,000 for the first time since mid-May on July 27. The asset posted gains along with the broader cryptocurrency market, which rose over 2.6% and is showing signs of a steady market uptrend.

Since last week, investors have been delaying their demand 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 exceeded $3.6 billion, driven primarily by U.S. spot BTC exchange-traded funds. This comes despite a slow start to the month.

July has historically been a positive month for BTC, and this year is no different. BTC has jumped over 15% in the last 30 days, setting a new record with over $19 billion in inflows since the beginning of the year.

24-hour BTC chart from July 29 | Source: crypto.news Bitcoin rally or another fake out?

Still, there are questions about whether this is a sustainable rally or another modest market recovery. Ryan Lee, chief analyst at Bitget Research, said market sentiment is relatively optimistic due to statements from former President Donald Trump and Senator Cynthia Lummis.

Trump and Lummis separately announced plans to create a national strategic BTC reserve, with Lummis proposing that the US Treasury Department purchase an additional million BTC, and Trump promising to halt all government Bitcoin liquidation.

Lee noted that the U.S. capital markets connection could also allow BTC to attract more investor demand. Seven major U.S. tech giants are scheduled to release their financial reports this week.

Positive data could support Nasdaq’s weekly figures and drive capital into assets like BTC. Lee added that the much-anticipated milder statements from the Federal Reserve this week could support BTC’s bullish thesis.

Meanwhile, on-chain data showed that BTC balances on crypto exchanges increased by around 35,000 tokens. The coins were deposited over a two-week period from July 15 to July 28. Users often intend to sell BTC on trading platforms, despite the fact that

The roughly $2.4 billion worth of BTC deposited on exchanges could put selling pressure on the asset. It’s unclear whether this number includes the Mt. Gox redemptions, another event that could weigh on BTC’s market price and trigger a potential rally above all-time highs.