Bitcoin Soars 17%: Market Sentiment Shifts Fueling BTC Surge Above $68K

• Bitcoin has experienced a significant surge, increasing by 17% over the past week.
• During this period, the cryptocurrency rose from below $60,000 to a six-week high above $68,000 on July 22.
• This rally has been driven by a shift in market sentiment, with a break above $61,133 turning the narrative from bearish to bullish.

Discover why Bitcoin surged over 17% last week, driven by changing market sentiment, retail trading, and significant inflows. Will the bullish momentum continue?

Market Sentiment and Retail Trading Drive Bitcoin Surge

As of July 22, Bitcoin’s significant price increase has been attributed to a positive shift in market sentiment. According to industry research firm 10x Research, the cryptocurrency broke above a critical level at $61,133, which pivoted market sentiment from bearish to bullish. This change has been primarily fueled by retail trading, especially over the weekends, which has caused further price gains and positive momentum extending into the next trading week.

Inflows and Market Dynamics

The past week saw cryptocurrency markets shift from experiencing net liquidity outflows to witnessing substantial inflows amounting to $3.3 billion. Futures, stablecoins, and spot Bitcoin ETFs have primarily driven this positive trend. Notably, spot Bitcoin ETFs alone saw $1.24 billion in inflows over five trading days, indicating robust investor interest.

Broader Market Influences and External Factors

While Bitcoin has seen impressive gains, Ethereum’s performance has been relatively modest, gaining only 4.5% over the same period. The anticipation around spot Ethereum ETFs trading, set to commence on July 23, has also contributed to the overall market optimism. In addition, market speculations about China adopting a more favorable stance towards cryptocurrency, using Hong Kong as a testing ground, have further stirred the market.

Geopolitical and Economic Influences

Developments in South Korea, particularly the proposed delay in crypto taxation until 2028, have spurred speculative trading. In the U.S., lower-than-expected CPI inflation data last week provided a floor for Bitcoin prices following a significant decline. Additionally, political events such as the attempted assassination of Donald Trump and President Joe Biden’s withdrawal from the election race have also positively impacted market sentiment.

Conclusion

As Bitcoin continues to exhibit bullish momentum, market participants are keenly observing for further developments. Rumors about potential SEC settlements and strategic announcements from political figures like Donald Trump could potentially drive Bitcoin prices even higher. The upcoming PCE inflation reports will also be crucial in shaping future market movements. Investors should stay informed and watch for verified updates as the crypto market evolves.