Bitcoin saw a significant rise on July 19 with the Wall Street opening, amidst uncertainties surrounding US President Joe Biden’s re-election campaign. TradingView data indicated that the BTC/USD pair approached one-month highs, suggesting renewed interest in Bitcoin’s price movement.
What’s Driving Bitcoin’s Surge?
Bitcoin’s performance surprised market participants by increasing over 2.5% in a single day, diverging from its previous lackluster consolidation behavior. Charles Edwards, founder of Capriole Investments, commented on Bitcoin’s sudden rise from $64,000 to over $65,000, considering it a potential safe haven amid global tech and banking issues caused by Microsoft’s blue screen of death.
The IT crash, involving Microsoft CrowdStrike software, affected various sectors including transportation and banking. Alongside this, political confusion about Biden’s re-election and an assassination attempt on his rival Donald Trump contributed to a surge in the crypto market. CoinGlass data revealed that the BTC/USD pair was consuming demand liquidity, with 24-hour crypto liquidations nearing $170 million.
How Are Investors Responding?
Popular trader Cheds noted that Bitcoin was attempting another move after consolidating on the four-hour chart. Meanwhile, analyst and podcast host Scott Melker maintained a bullish stance on Bitcoin’s relative strength index (RSI). This optimism extended to trading firm QCP Capital, which began to believe Bitcoin had completed its all-time low.
Market Insights
– Perpetual futures funding rates have stabilized.
– Trading volume has decreased significantly.
– Bitcoin has returned to a familiar range of $61,000 to $71,000.
QCP Capital noted that the recent price action showed resilience against ongoing supply issues from Mt. Gox, hinting that the market might have overcome many of its previous concerns.
In conclusion, Bitcoin’s recent surge amidst tech and political chaos highlights its growing perception as a safe haven asset. Investors are cautiously optimistic as the market appears to stabilize and return to familiar trading ranges.