Bitcoin’s price has recently rebounded, reversing a downturn that began in March, and breaking through the $67,000 barrier after a month-long period. This surge occurred following positive signals from the market, lifting the price from its previous low below $70,000.
Why is Bitcoin Price Rising?
On July 19, Bitcoin’s price hit a monthly peak of $67,386, marking a 5% increase. This level was last seen on June 13 during a downward phase. Following the rise, Bitcoin saw a minor pullback, trading at $66,554. Analysts attribute this rise to several factors, notably the conclusion of a nearly $3 billion BTC sale by the German government. The government liquidated 49,858 BTC, amassing $2.8 billion.
What Are Other Contributing Factors?
A survey on Reddit indicated that creditors of the hacked crypto exchange Mt. Gox are reluctant to sell their reclaimed Bitcoins, voting largely against liquidation. Additionally, Bitcoin ETFs experienced a significant influx, exceeding $1 billion for the week. Gemini exchange noted that new investors might be entering the market via Bitcoin ETFs during this downturn as a strategy to increase their Bitcoin exposure.
Market Insights
– The German government’s sale of BTC led to market stabilization.
– Mt. Gox creditors’ reluctance to sell their Bitcoins could reduce supply pressure.
– The surge in Bitcoin ETF inflows suggests growing institutional interest.
Bitcoin Miners Accumulate
Emerging data indicates a notable shift among Bitcoin miners towards accumulation. According to IntoTheBlock, miners have increased their holdings by approximately 4,500 BTC, valued at around $300 million, this month. Additionally, the number of addresses holding 1,000 or more BTC has reached a two-year high, hinting at a renewed interest from large-scale investors.
In conclusion, the combination of reduced selling pressure from major Bitcoin holders, increased institutional investment through ETFs, and strategic accumulation by miners has contributed to the recent rise in Bitcoin’s price, indicating a potentially bullish trend moving forward.