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Join WhatsApp channelBitcoin has surged to a two-month high, reflecting a broader bullish sentiment in the cryptocurrency market. On July 27, Bitcoin briefly touched $70,000, a level not seen since mid-May, marking a significant recovery. This rally coincides with a 2.6% overall increase in the cryptocurrency market, indicating a potential shift in investor appetite toward risk assets.
The latest uptick in Bitcoin’s value is supported by a resurgence in investor interest. From July 22 to July 26, Bitcoin-related investment products attracted $519 million in capital, as reported by CoinShares. This influx contributes to a remarkable $3.6 billion in Bitcoin inflows for July, driven largely by U.S. spot Bitcoin exchange-traded funds (ETFs). Despite a slow start to the month, these numbers underscore a growing confidence in Bitcoin as a viable asset class.
Historically, July has been a favorable month for Bitcoin, and this year continues the trend. The cryptocurrency has gained over 15% in the past 30 days and has accumulated more than $19 billion in year-to-date inflows, setting a new record. However, there remains uncertainty about whether this rally is sustainable or merely a temporary rebound.
According to Ryan Lee, Chief Analyst at Bitget Research, the market’s optimistic outlook is bolstered by recent statements from former President Donald Trump and Senator Cynthia Lummis. Both political figures have advocated for a national strategic Bitcoin reserve, with Lummis proposing a U.S. Treasury purchase of an additional one million BTC, while Trump has pledged to stop government Bitcoin liquidations.
Lee also highlighted the potential influence of U.S. capital markets on Bitcoin’s price. With major U.S. tech companies releasing financial reports this week, positive outcomes could drive additional investment into Bitcoin. Furthermore, anticipated dovish remarks from the Federal Reserve are expected to reinforce Bitcoin’s bullish momentum.
On the other hand, on-chain data indicates a potential risk factor: an increase of approximately 35,000 BTC in exchange balances over a two-week period ending July 28. This influx, representing about $2.4 billion, may lead to increased selling pressure, particularly if it includes Mt. Gox repayments. Such developments could impact Bitcoin’s price trajectory, potentially stalling the rally before it reaches new highs.
