The German government’s sale of 50,000 BTC for $2.87 billion has removed a large supply from the market, easing selling pressure and paving the way for price appreciation.
Fueled by a surge in investment from exchange-traded funds (ETFs) and a potential change in US leadership, Bitcoin (BTC) surpassed the $68,000 resistance level on Sunday night, marking a significant milestone in the cryptocurrency’s ongoing rally.
Analysts attribute a substantial portion of this momentum to the relentless inflows into US Bitcoin ETFs. According to data from SoSoValues, BlackRock’s iShares Bitcoin Trust (IBIT) has amassed a staggering $19 billion in net inflows since its launch, and the trend shows no signs of slowing down.
“In total, the market has witnessed record net inflows exceeding $17 billion,” says Rachael Lucas, a crypto analyst at BTC Markets. “This reflects heightened institutional interest and confidence in Bitcoin as an asset class.”
Ethereum ETFs Fuel Market Uptrend
The launch of the first batch of spot Ethereum ETFs in the US is highly anticipated and adds further fuel to the fire. Scheduled for July 23rd, these funds are offered by Cboe and include the Fidelity Ethereum Fund, the Franklin Ethereum ETF, the Invesco Galaxy Ethereum ETF, the VanEck Ethereum ETF, and the 21Shares Core Ethereum ETF.
The recent political developments in the US have also played a role in Bitcoin’s price surge. President Joe Biden’s announcement to step down from the 2024 presidential race has increased the likelihood of a victory for Donald Trump, a vocal advocate for cryptocurrencies.
While Vice President Kamala Harris, nominated as the Democratic Party’s replacement candidate, has not publicly expressed her stance on the industry, a potential shift in leadership raises questions about future crypto regulations.
The recent sale of 50,000 BTC by the German government, generating approximately $2.87 billion, has also contributed to Bitcoin’s price movement. This significant offloading of holdings by a major seller has essentially removed a large chunk of supply from the market, alleviating selling pressure and creating an environment for price appreciation.
Mt. Gox Impact Looms
Analysts warn that upcoming repayments from the defunct Mt. Gox cryptocurrency exchange could impact the market’s trajectory. With $9 billion expected to be distributed to creditors by early August, short-term price fluctuations are possible as these funds re-enter the market.
Bitcoin is currently trading at $67,300, marking a 0.45% surge in the last 24 hours. Bitcoin’s recent breakout above $68,000 shows optimism and renewed confidence in the cryptocurrency market. Surging ETF inflows, the launch of spot Ethereum ETFs, and a potentially crypto-friendly political landscape have created a bullish environment for investors. While short-term volatility is likely due to the Mt. Gox repayments, the long-term outlook for Bitcoin looks increasingly positive.
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