Bitcoin Price Surges to $70,000, Prompting Bull Market Speculation Amid Economic Factors
Summary:
Bitcoin (BTC) value has spiked to reach the $70,000 mark, fuelled by a surge in spot buying and investment in BTC exchange-traded funds. This rise has led the crypto community to question whether it's the onset or nearing the climax of the bull market. Economic factors like the U.S's monetary expansion and restricted availability of BTC on major trading platforms further add to the bullish sentiment. This report urges readers to conduct personal research as each investment and trading decision involves risk.
The price of Bitcoin (BTC) has successfully soared, attaining an impressive $70,000 milestone. Observations reveal a marked increase in spot buying and engagement in spot BTC exchange-traded fund (ETF) investment. Consequently, the crypto community is left to speculate whether this signals the beginning or possible climax of the bull market. Charts and spot ETF activity emphasize such market changes, as portrayed by cryptocurrency analyst 'ELI5 of TLDR'. Majority of on-chain indicators suggest the inception of a potential bull market, despite a few indicating peaking behaviors.
There is a revived interest following the recent support bounce around $60,000, and Farside Investors reported around $950 million inflows last week, a number unseen since March. Taking into account this trend, BTC might possibly surpass expectations. Currently, BTC is trading just shy of $70,000, with the 20-day EMA located at $64,371 and a positive RSI hinting at a probable upward shift. If the $68,000 resistance is surpassed, it could set BTC's price towards $73,777, although this could incite a strong bearish reaction. Yet, if there is a break below the moving averages, it might indicate a bearish downturn and potential price drops to $59,600 and $56,552.
In the grand scheme of the economy, Bitcoin's 51% increment in value since the beginning of the year showcases investors' expectation of the U.S monetary expansion, which has seen the M2 monetary base crossing $21.0 trillion in April 2024. This surge in money circulation suggests growing inflationary pressures, despite companies' and individuals' reluctance in spending. The intended measures by the Federal Reserve to control inflation and prevent a recession might influence liquidity, thus affecting the attraction towards scarce assets such as Bitcoin.
Adding fuel to the bullish atmosphere, BTC reserves within exchanges have dropped to a seven-year low, with data from CryptoQuant indicating just 1,918,417 BTC available on major trading platforms as of May 19. This amount reflects a significant decrease from the previous year. This current limited availability, together with the recent halving event that reduced the potential new supply from miners, makes it increasingly challenging to maintain a bearish view on Bitcoin.
This report does not serve as investment advice or recommendations. Each investment and trading movement encompasses risk, hence readers are urged to conduct personal research prior to making any decision.
Published At
5/20/2024 10:47:14 PM
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