- Bitcoin’s recent upward momentum has led to a weekly close above $67,000.
- According to CoinMarketCap, Bitcoin reached $68,480 early today and has seen a 1.02% increase in the last 24 hours, trading at $68,032. The overall crypto market value rose by 0.89% yesterday. Solana, trading at $182.12, experienced a 4.73% increase.
- BTC Markets’ crypto analyst Rachael Lucas noted that one of the key drivers behind this momentum is the steady net inflows into Bitcoin ETFs, with BlackRock’s IBIT accumulating around $19 billion since its inception, according to SoSoValue data.
Read about Bitcoin’s remarkable weekly performance and its impact on the crypto market, including rising ETF inflows and the influence of key global events.
Bitcoin Surges Past $67,000: Key Drivers and Market Reactions
Bitcoin has recently maintained its positive trajectory, committing to a weekly close above the $67,000 mark. Early today, the cryptocurrency soared to $68,480 before stabilizing at $68,032, representing a 1.02% increase over the past 24 hours. This uptick aligns with a 0.89% rise in the overall cryptocurrency market value. Solana also followed suit, marking a 4.73% increase and trading at $182.12.
ETF Inflows Boost Bitcoin Sentiment
According to Rachael Lucas, a crypto analyst at BTC Markets, a significant portion of Bitcoin’s recent success can be attributed to substantial net inflows into Bitcoin ETFs. For the eleventh consecutive day, U.S. Bitcoin ETFs have reported positive inflows, with BlackRock’s IBIT ETF accumulating approximately $19 billion since its establishment. Lucas commented, “The market has witnessed record net inflows surpassing $17 billion, reflecting growing institutional interest and confidence in Bitcoin as an asset class.”
Significant Movements in the Crypto Landscape
Bitcoin experienced additional volatility following U.S. President Joe Biden’s announcement that he would not seek re-election in November, a development that potentially increases the chances of pro-crypto Republican candidate Donald Trump’s victory. Biden has endorsed Vice President Kamala Harris as the Democratic candidate, although her stance on the crypto industry remains neutral.
Furthermore, Lucas emphasized that the exhaustion of major sellers, particularly the recent sale of 50,000 BTC by the German government, has contributed to Bitcoin’s reduced volatility. “This sale, amounting to approximately $2.87 billion, removed a significant amount of Bitcoin from the market, thereby alleviating selling pressure,” she noted.
Looking Ahead: Potential Market Influences
Despite positive movements, the market remains sensitive to potential short-term fluctuations, particularly with the expected repayments from the defunct Mt. Gox crypto exchange. Lucas explained that the anticipated creditor repayments, totaling $9 billion, could influence market dynamics. The majority of these repayments are expected to be processed by early August, potentially introducing short-term volatility.
Conclusion
Bitcoin’s recent performance, highlighted by a weekly close above $67,000 and reinforced by significant ETF inflows, underscores growing institutional confidence in the cryptocurrency market. While key developments like the U.S. presidential announcement and German BTC sales have impacted market dynamics, the potential for short-term volatility remains with upcoming Mt. Gox repayments. For investors, staying informed and cautious in this evolving landscape is crucial.
