Bitcoin’s Price is Soaring Once More!
Sat 20 Jul 2024 ▪
4
min of reading ▪ by
Bitcoin surprises us once again with a spectacular surge in its value. While investors are rubbing their hands, analysts are scrutinizing trends, and financial markets are holding their breath. With an impressive rise at the Wall Street opening, Bitcoin confirms its status as a safe haven.
An Explosive Opening at Wall Street
At the opening of Wall Street on July 19, Bitcoin took everyone by surprise by crossing the $65,000 mark.
Within minutes, BTC/USD defied monthly highs, leaving investors and observers stunned. This sudden rise occurred in a context of political confusion in the United States, where rumors about President Joe Biden possibly not seeking re-election circulated.
Although these rumors remained unconfirmed, they were enough to sow doubt and trigger movements in the markets.
Charles Edwards, founder of the quantitative Bitcoin and digital assets fund Capriole Investments, highlighted the possible impact of the global IT crash involving Microsoft’s CrowdStrike software.
This incident affected key sectors such as transportation and banking, strengthening Bitcoin’s appeal as a decentralized safe haven.
Massive liquidations of short positions also contributed to this surge, with losses reaching $170 million in 24 hours.
Favorable Conditions for Continued Growth
The current conditions seem to favor a continued rise in Bitcoin. Optimism is palpable among investors, supported by technical indicators and positive market movements.
QCP Capital, a renowned trading firm, recently published a bulletin claiming that Bitcoin might have completed its decline phase after its all-time high.
They note that funding rates for perpetual futures contracts have returned to flat levels, while trading volume is drifting lower, suggesting regained stability.
Investor appetite for Bitcoin exchange-traded funds (ETFs) remains strong despite market fluctuations.
Net inflows into Bitcoin ETFs have reached impressive levels, signaling sustained investor confidence in Bitcoin’s potential.
This trend, combined with increased resilience to economic headwinds, reinforces the idea that Bitcoin is well-positioned to continue its progression.
Upcoming Challenges for Bitcoin
Despite this positive momentum, Bitcoin faces several potential challenges.
The recent repayments of BTC by the defunct Mt. Gox exchange to its creditors could weigh on the market.
However, analysts suggest that creditors might choose to hold onto their BTC, thus limiting the negative impact on the overall market.
Additionally, declining corporate profits and signs of global economic weakness could pose risks to Bitcoin’s continued performance.
According to a report by asset manager ARK Invest, Bitcoin showed signs of being oversold in June, exacerbated by the massive BTC sell-off by the German government.
This sale, though temporarily destabilizing, was interpreted by some as a harbinger of a bullish reversal.
The current levels of capital outflows from miners also suggest a capitulation, often perceived as a positive indicator for a market rebound.
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Fasciné par le bitcoin depuis 2017, Evariste n’a cessé de se documenter sur le sujet. Si son premier intérêt s’est porté sur le trading, il essaie désormais activement d’appréhender toutes les avancées centrées sur les cryptomonnaies. En tant que rédacteur, il aspire à fournir en permanence un travail de haute qualité qui reflète l’état du secteur dans son ensemble.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
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