We always knew Bitcoin had something up its sleeve after its tootsie slide in June. However, we weren’t expecting such a tremendous turnaround for Bitcoin so soon. What caused the huge jump? And most importantly, what does this mean for Bitcoin today? Read more to find out!
How Did it happen?
Bitcoin rose by 4.5% from June 28 to July 1, breaking the $63,000 resistance for the first time in a week. The prior decline was largely due to fears stirred by the German government’s BTC transactions with exchanges. Then there’s Mt Gox on one side selling large amounts of Bitcoin during the bankruptcy proceedings.
Regardless, here are 3 main factors responsible for this shift with the possibility of an ace up Bitcoin’s sleeves.
Magic or Market manipulation?
Well, it seems Bitcoin knows its stuff, controlling the rebellious tide of market volatility rather expertly.
So here’s the gist.
Yesterday, July 1st, the German government moved 1,500 BTC, valued at $95 million, to various cryptocurrency exchanges. Currently, the German government possesses Bitcoin assets worth $2.8 billion, primarily acquired from a defunct movie piracy site closed in 2013.
According to Arkham Intelligence, the U.S. government also transferred 1,184 BTC on June 30 from a wallet linked to previously confiscated funds. The most significant recent transaction by the U.S. government occurred on June 26, when it sent 3,940 BTC, worth $214 million at that time, to a Coinbase Prime account. These funds were confiscated from Banmeet Singh, a convicted drug trafficker, earlier in 2024.
You might be asking, “How do these numbers affect Bitcoin?”. But if you read your crypto handbook well, you’ll know that these huge transactions leave a ripple effect on the crypto market. Simply put, these international transactions created speculation that there would be more heavy transactions to come. Hereby, causing an increase in Bitcoin demand, which eventually spiked the price of Bitcoin.
Next time you want to study market manipulation, just ask Bitcoin.
Bitcoin’s ETF
So it’s not all witchcraft and manipulation after all. Bitcoin added a $137 million market cap between June 25 and June 28 at the spot Bitcoin exchange-traded funds (ETFs). This was an attempt to increase circulation in the crypto market and boost the price to its original position.
Which worked, by the way—great job Bitcoin!
Tech Stock Market Inflation
It seems that the U.S. tech stock market inflation is reaching an all-time high, with NVIDIA steeping downward barely 2 months after a significant increase.
Meanwhile, our spaceX genius isn’t left out as analysts predict a 3.2% decline in Tesla’s second-quarter sales due to intense competition in China and sluggish demand from the lack of affordable new models. According to Yahoo Finance, CEO Elon Musk canceled plans for a new, more affordable electric vehicle, which sparked some concerns. Sadly, Tesla’s stock has fallen 15.5% since the start of the year.
Due to all these disappointments, investors desperately turn to Bitcoin for a turn of luck. Thus increasing market demand for BTC.
The Ace up Bitcoin’s sleeve
Remember I told you that Bitcoin has a trump card which is bound to solidify its stand in the crypto market? Well, get ready to be shocked.
Billionaire Michael Dell, founder and CEO of Dell Technologies, sparked excitement on June 21 with a suggestive message about a possible Bitcoin investment. Dell, listed by Forbes as one of the 20 richest people in the world, posted a meme featuring the Cookie Monster clutching some Bitcoin-shaped cookies. Joe Consorti, an analyst at Bitcoin Layer, highlighted that Dell’s company has $5.83 billion in cash and equivalents.
So there you have it! All the tea behind Bitcoin’s legendary rise.
As a crypto trader, you should learn a thing or two from Bitcoin today. The crypto market is as rewarding as it is ruthless, only skillful traders can ride the waves of the crypto market with huge bounty gains.
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