Bitcoin’s price surged close to $65,000 in early Tuesday trading hours, reflecting a shift in market sentiment from fear to greed. Strategic market activities, such as the Japanese firm Metaplanet’s acquisition of 21.877 BTC worth $1.2 million, have played a key role in this recovery. Metaplanet’s total Bitcoin holdings now amount to 225.611 BTC, valued at $14.17 million. Analysts at 10X Market attribute Bitcoin’s recent price movements to various factors, including significant market inflows and external endorsements like BlackRock CEO Larry Fink’s bullish outlook on Bitcoin.
After a period of oversold rally, Bitcoin rose by 10% from last Friday, breaking out of a downward trend. The sentiment turned from bearish to bullish as the price surpassed $61,133. Factors contributing to Bitcoin’s strong performance include $3.3 billion in market inflows last week, particularly from futures, stablecoins, and Bitcoin Spot ETFs. Tether’s minting of $1 billion in USDT signals a positive trend, while Bitcoin Spot ETFs like BlackRock’s iShares Bitcoin Trust and Ark 21 Shares Bitcoin ETF have experienced substantial inflows.
Speculative activities and external endorsements, such as Larry Fink’s positive comments on Bitcoin, have boosted investor confidence. The potential launch of an Ethereum ETF and rumors of softer regulatory approaches towards cryptocurrencies in China and South Korea’s delayed crypto tax have further energized the market. Avinash Shekhar, Co-Founder of Pi42, attributes Bitcoin’s recent price surge to market developments and the failed assassination attempt on pro-crypto US Presidential candidate Donald Trump.
Despite hitting $65,000 earlier in the day, Bitcoin is currently trading around $63,000. Some believe that Bitcoin’s price has bottomed out, with Rekt Capital noting that the recent correction was the deepest in the cycle at -25.6% and the third-longest at 42 days. As the market continues to evolve, it is important for readers to verify facts independently and consult with professionals before making any decisions based on market trends. BeInCrypto remains committed to unbiased and transparent reporting in accordance with the Trust Project guidelines.
