The forces behind the wave

Bitcoin came close to its all-time high today before being rejected there. There are several factors at play that have supported the rise in prices of the iconic crypto asset.

On the one hand, bitcoin outperformed the average realized price for short-term investors after breaking above $63,500, indicating renewed market strength.

According to the latest findings from on-chain analytics platform CryptoQuant, the market capitalizations of USDT and USDC have grown, which has significantly affected the price trajectory of bitcoin.

Miners, who were previously in an underpaid phase, now get fair compensation, allowing them to break even. This essentially improved the stability of the market. Another key point is the significant inflows into Bitcoin ETF spot funds over the past two weeks, which further evidenced investor confidence.

In addition, Mt. Gox has begun paying creditors through crypto exchanges (Bitstamp and Kraken) without causing market panic or supply shocks.

While the launch of spot Ethereum ETFs didn’t exactly attract fanfare, the positive sentiment was visible across the board.

The highlight, however, was the recent Bitcoin conference in Nashville, where former US President Donald Trump delivered a pro-crypto keynote speech, which seems to have emboldened the market’s bulls.

Trump’s Hails Crypto in Nashville

At the conference, Trump outlined a series of bold policies aimed at reshaping the US crypto landscape. If elected, he promised that the US government would keep 100% of the Bitcoin seized in various cases.

Trump vowed to fire SEC Chairman Gary Gensler on his first day in office, addressing concerns about regulatory oversight. He also proposed reducing energy costs to boost domestic mining and asserted the right to self-custody of cryptocurrencies.

In addition, Trump pledged to ban the creation of central bank digital currencies (CBDCs), introduce a regulatory framework for stablecoins, and end Operation Chokepoint 2.0, which targets financial institutions involved in crypto .

Another notable commitment includes reversing Ross Ulbricht’s sentence, and his broader vision is for the United States to emerge as the world’s crypto capital.

What’s Next for Bitcoin?

Despite Trump’s upbeat remarks at the conference, bitcoin has struggled to break past its all-time high, suggesting the asset may continue to trade within a range, according to QCP Capital’s latest update.

“With Bitcoin not breaching its ATH despite Trump’s bullish remarks, it is plausible that Bitcoin will continue to trade in a range.”

Bitcoin’s recent surge is also attributed to optimism surrounding Vice President Kamala Harris, who is seen as potentially more crypto-friendly than Biden. While Harris has yet to comment on the asset class, his team has reached out to major crypto companies like Coinbase, Circle, and Ripple Labs to improve relationships.

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