Bitcoin Surpasses $68,000, What’s Driving 17% Weekly Rise?

Bitcoin has gained about 17% since last weekend, which equates to about $9,000 over the past seven days or so.

The asset traded below $60,000 last weekend but rose to a six-week high above $68,000 on July 22.

What has been the market momentum over the past week and will it continue?

Bitcoin is back

On July 22, industry research firm 10x Research provided a number of reasons for the big price bomb. First, there has been a shift in market sentiment as BTC broke through a key $61,133 level, changing the narrative from bearish to bullish.

The analysis added that retail had been driving weekend rallies with retail investors, fueling weekend gains and positive momentum into Monday.

This was seen this weekend, with BTC gaining over 6% since Friday. The asset hit a multi-week high of $68,480 during early morning trading in Asia on Monday.

Also, after four weeks of net outflows of liquidity totaling $8 billion, crypto markets saw inflows of $3.3 billion last week.

“This influx, mainly of spot Bitcoin futures, stablecoins and ETFs, marked a positive trend change.”

Last week, local Bitcoin ETFs racked up about $1.24 billion in inflows over five trading days, CryptoPotato reports.

10 reasons why #Bitcoin 10% increase

From Monday 15 July

👇1-12) Often influenced by changing narratives, rumors and speculation, Bitcoin can quickly adjust its value based on new information. Since this past Friday, Bitcoin is up 10%. What initially seemed…

— 10x Research (@10x_Research) July 21, 2024

Ethereum ETF hype has also contributed to the market’s gains, as all indications are that they will begin trading on July 23rd. However, ETH prices have only managed to gain 4.5% over the past week, lagging behind Bitcoin.

There have also been rumors suggesting that China could take a more supportive stance on crypto, with Hong Kong’s rules serving as a test case, the analyst said.

In addition, markets in South Korea have been boosted by a proposal to defer crypto taxation until 2028, spurring speculative trading.

Last week’s lower-than-expected CPI inflation data “set a floor for Bitcoin prices after a 20% high-to-low drop,” they added. PCE inflation reports will be released this week which could provide more bullish momentum.

US politics has also had an impact, with a failed assassination attempt on Donald Trump and President Joe Biden dropping out of the election race, further bolstering sentiment in the crypto market.

Bullish week ahead?

On July 22, the firm’s head of research, Markus Thielen, said that more momentum could be seen this week.

“The SEC may be rumored to settle a major case, and former President Trump is set to deliver a highly anticipated speech in Nashville.”

There is speculation that Trump will announce BTC as a strategic reserve asset, “which could lead to a parabolic rise in the price of Bitcoin.”

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