Bitcoin Jumps Amid German Government BTC Sale
Bitcoin has reclaimed ground above $62,000, with analysts suggesting the worst of the selling might be over now that German BTC sales have concluded and Mt. Gox payments are largely priced in.
Bitcoin has surged 5.2% in the last 24 hours, bouncing off two-month lows of $53,500 on July 4, and is currently trading at $62,550, according to TradingView data.
Ben Simpson, founder of the crypto education platform Collective Shift, told Cointelegraph that he believes Bitcoin’s “local bottom” has been established and that BTC is now on an upward trend.
Simpson noted that Bitcoin’s price had been significantly impacted by nearly $3 billion in forced sales from the German government and negative sentiment from $8.5 billion in Mt. Gox creditor repayments.
On July 12, when Bitcoin hovered around $59,000, the Crypto Fear & Greed Index dropped to an 18-month low, which Simpson found inconsistent with a more fundamentals-based market approach.
“Generally, I just felt there was a very big mismatch between sentiment and fundamentals,” he said.
Looking ahead, Simpson pointed to several key factors as bullish for Bitcoin’s price in the coming weeks and months:
“Jerome Powell is hinting towards potentially lowering rates at some point soon. We’ve also got the S&P 500 reaching new highs and strong Bitcoin ETF inflows.”
Over $360 million in leveraged short positions on Bitcoin were liquidated as Bitcoin broke through $62,000, according to Coinglass data cited by Apollo Sats founder Thomas Fahrer in a July 15 post on X.
Similarly, eToro market analyst Josh Gilbert told Cointelegraph that the worst of Bitcoin’s price decline might be behind us, noting Trump’s increased odds of winning the upcoming election as a potential driver of positive price action:
“We’ve seen weakness in the last few months, but I think the worst is likely behind us. Any short-term weakness is likely to be bought with this in mind, alongside the tailwind of an Ether ETF and, of course, a more pro-crypto US party potentially being elected.”
“The attack on former President Trump this week has positively impacted his reelection odds, with the former President’s pro-crypto stance lifting Bitcoin and crypto assets in the process,” Gilbert said.
Gilbert also highlighted that Trump and Republicans have a more favorable stance on crypto compared to Democrats.
“The closer we move to Trump potentially gaining his spot back in the White House, the higher we’re likely to see Bitcoin move,” he added.
Gustavo Schwenkler, director of Australian crypto exchange Cointree, told Cointelegraph that the narrative around Mt. Gox creditors dumping their Bitcoin on the market had already been “processed and priced in” as of last week.
Schwenkler sees lower-than-expected inflation figures in the US and the potential for lowered interest rates as strong catalysts for the crypto markets.
“Inflation came out lower than expected and expectations that the Fed will start cutting rates got a boost. The market is now expecting first-rate cuts as soon as September,” he said.
However, Schwenkler cautioned that any potential upward swing in Bitcoin’s price would likely not happen overnight:
“I also don’t think there’s going to be a lot of push for the price to go much higher in the short run. I think we will see BTC move around $55-65k at least until the Fed actually cuts rates.”
Mark Hiriart, head of sales at crypto asset manager Zerocap, argues that despite Bitcoin breaking $62,000, it needs to turn the $60,000 resistance into support, meaning the price must hold steady above $60,000 for a while.
Additionally, he mentioned that Bitcoin would need to reclaim its key 50-day and 100-day simple moving averages before it could progress higher to $65,000 and beyond.
Hiriart also warned there could still be some adverse effects from the potential Mt. Gox Bitcoin repayments.
“With Mt. Gox’s creditors sitting on a ten-year profit, it would be naive to think there won’t be any profit taking,” he said.
“The question is how staggered are the distributions and what percentage of recipients want to cash in. I would suspect short-term pressure on the market to continue over the Summer months,” he added.
Sources:
https://cointelegraph.com/news/bitcoin-price-reclaims-62k-analysts-worst-behind-us
https://www.tradingview.com/symbols/BTCUSD/?exchange=COINBASE
Try to invite your friends and earn together
10% of trading fees of your friends and 5% from the earnings of your friends.
