Bitcoin Soars Amid Peak Sentiment and Pro-Crypto Developments

Bitcoin’s recent 20% surge over the past three weeks has invigorated bullish sentiments among traders, as evidenced by data from Santiment.

This shift in sentiment marks the most positive outlook on Bitcoin since March 2023, with the cryptocurrency being discussed more favorably on social media than at any time in the last 16 months. Santiment’s weighted sentiment index, which measures the ratio of positive to negative comments on the platform X, has surged to a 16-month high. Bitcoin’s rally saw its price surpass the $67,000 mark, representing a 6.22% increase since July 25, according to data from crypto.news.

Bitcoin’s price peaked at $69,404 on July 28, its highest since June 12, although it is currently trading around $67,770. This bullish trend follows cooler-than-expected inflation data, raising expectations for multiple interest rate cuts by the U.S. Federal Reserve this year.

The leading cryptocurrency has risen over 23% from its recent low of $53,550 on July 5, driven by robust dip-buying from Bitcoin ETF investors. These investment vehicles have maintained their strong performance, with fresh inflows of $534 million over the past week. Notably, BlackRock’s Bitcoin ETF is approaching $20 billion in assets under management.

Adding to the positive sentiment, U.S. Senator Cynthia Lummis introduced a comprehensive plan for a national strategic Bitcoin reserve. The announcement, made on July 27 at the Bitcoin 2024 conference in Nashville, came amid growing pro-crypto sentiment. Lummis unveiled the Bitcoin reserve legislation shortly after former President Donald Trump delivered a keynote address at the event, where he voiced strong support for the cryptocurrency sector.

In further encouraging news from Washington, reports surfaced that Vice President Kamala Harris’ campaign team has reached out to major U.S. crypto companies to “reset relations.”

The combination of Bitcoin’s price rally, strategic legislative initiatives, and high-profile endorsements underscores a growing bullish phase for the cryptocurrency market, potentially paving the way for significant developments ahead.

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