Bitcoin price started to fall in the first week of July. Due to this, you could see the areas of $53,500 on the chart again, where the market has not been since March of this year. However, now the price of BTC is rising again. Why?
Bitcoin price is rising because…
Of course, the price increase cannot be explained by just one factor. The basic and simplest answer is: the price is rising because the market has decided that it will not fall any lower. And there is a lot of truth in this. When it fell to around USD 53,500, a surge in volume could be seen. Investors decided that this was “the” moment: bitcoin is “cheap, so it is worth returning to the market with more capital. From that moment on, we have been observing a return towards the previous ATH – USD 69,000. Currently, 1 BTC costs USD 65,629.
Germans have stopped ruining bitcoin
But it’s not just about the fairly natural processes that always occur on stock exchanges. They were joined by the fact that the German government ended the sale of bitcoins that it had previously seized from an illegal platform with pirated films.
In fact, one might get the impression that these “drops” by German authorities generated mainly a psychological effect. Some investors panicked and sold their bitcoins. Hence, the information that the Germans had run out of “ammunition” improved the mood.
In the background, we can observe bitcoin withdrawals by the Mt. Gox trustee. The exchange, which went bankrupt over a decade ago, is only now returning cryptocurrencies to its former customers. And here there was a fear that the market would not be able to “swallow” such quantities of coins. We are talking about about USD 8.5 billion in BTC! Except that the withdrawals are made in installments. Hence, as you can see in the chart above, investors buy them without any problems. Or at least those whose owners decided to liquidate their assets frozen for a decade. Probably many of Gox’s creditors will keep their bitcoins, assuming that they will additionally gain in value.
Americans have something to say here too
Another factor that has a positive impact on the bitcoin price is the growing hopes for interest rate cuts in the US. In June 2024, consumer inflation (CPI) in the US was 3%. This means that the scale of price increases is still falling. In addition, unemployment is rising in the US.
Currently – according to the Fed Watch Tool – the probability of the US central bank making the first 25 bp rate cut is as much as 93.3%. The market can ride on this hope until at least September 18, the day of the authorities’ meeting.
The latest growth factor is the failed assassination attempt on Donald Trump. The former US president wants to return to the White House after a one-term hiatus. He promises to change his country’s policy on cryptocurrencies. On Saturday, there was an attempt on his life. It was unsuccessful. According to many experts, the fact that the politician survived significantly increases his chances of winning. This is great news for bitcoin!
