Markets
Bitcoin Surged Past $68,000, What Caused This 17% Weekly Surge?
Bitcoin has gained about 17% since last weekend, which is equivalent to about $9,000 over the past seven days or so.
The asset was trading below $60,000 last weekend, but hit a six-week high above $68,000 on July 22.
What has driven 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 sharp price increase. First, market sentiment shifted when BTC broke a key level at $61,133, shifting the narrative from bearish to bullish.
The analysis added that retail trading was behind the weekend rallies among retail investors, which fueled the weekend gains and the positive momentum that continued into Monday.
That’s what happened over the weekend, with BTC gaining more than 6% since Friday. The asset hit a multi-week high of $68,480 during Monday morning trading in Asia.
Additionally, after four weeks of net liquidity outflows totaling $8 billion, cryptocurrency markets saw $3.3 billion in inflows last week.
“This inflow, coming primarily from futures, stablecoins, and spot Bitcoin ETFs, marked a positive trend change.”
Last week, spot the Bitcoin ETFs accumulated approximately $1.24 billion in inflows over five trading days, as reported by CryptoPotato.
The hype surrounding the Spot Ethereum ETF has also contributed to the market gains, as all indications are that they are about to start trading on July 23. 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 favorable stance on cryptocurrencies, with Hong Kong’s rules serving as a test case, the analyst said.
Additionally, markets in South Korea were boosted by a proposal to delay cryptocurrency taxation until 2028, spurring speculative trading.
Last week’s weaker-than-expected CPI inflation data “set a floor for Bitcoin prices after a 20% peak-to-trough decline,” they added. This week, personal consumption expenditure inflation reports will be released, which could provide further bullish momentum.
US politics also had an influence, with a failed assassination attempt on Donald Trump and President Joe Biden resign of the election race further strengthening the sentiment of the cryptocurrency market.
A bullish week ahead?
On July 22, the firm’s research director, Markus Thielen, said that this week could see stronger momentum.
“Rumors are rife that the SEC could settle a major case, and former President Trump is expected to deliver a highly anticipated speech in Nashville.”
There is speculation that Asset will announce BTC as a strategic reserve asset, “which could trigger a parabolic rise in the price of Bitcoin.”