- Experts noted traders shifting focus from Mt.Gox and German government sales to the incident involving US presidential candidate Donald Trump and macroeconomic statistics.
- On-chain analysts observed bitcoin whales accumulating coins.
With the conclusion of sales by German authorities and the Mt.Gox factor largely priced in, bitcoin is poised to reclaim lost ground in the coming months, according to analysts cited by Cointelegraph.
Experts responded to the recovery of the leading cryptocurrency’s rate above $62,000. At the time of writing, the price approached $63,000.
The Trump and Fed Factor
Ben Simpson, founder of Collective Shift, informed the publication about the formation of a bottom and a return to an upward trend.
“[Federal Reserve Chairman] Jerome Powell hints at the possibility of rate cuts soon. Against this backdrop, the S&P 500 is surging to new highs, and there is a strong inflow of funds into bitcoin ETFs,” explained the expert.
eToro analyst Josh Gilbert also expressed optimism about the prospects for digital gold, citing Donald Trump’s increased chances of winning the upcoming US presidential election as a key factor.
According to Polymarket, the corresponding probability jumped from 60% to a record 71%.
“The attempt positively impacted his position in the race, and due to the candidate’s pro-crypto views, bitcoin also rose,” he explained.
According to Cointree CEO Gustavo Schwenkler, the Mt.Gox story is already “priced in.” The top manager is convinced that positive US inflation data and the increased likelihood of a Fed rate cut have become a strong catalyst for bulls.
Mark Hiriart from Zerocap warned that for the positive momentum to develop, the digital gold rate still needs to confirm $60,000 as support. Another condition is overcoming the 100 and 50 DMA.
Unlike Schwenkler, Hiriart is skeptical about the diminishing impact of Mt.Gox sales and believes that “short-term market pressure will persist during the summer months.”
On-chain Analysis
According to IntoTheBlock, amid falling prices, bitcoin whales added 71,000 BTC to their wallets over the past week. The main efforts were on July 5, when the price of the leading cryptocurrency fell to $54,200.
Bitcoin whales added 71K BTC to their wallets this week, as they capitalized on the recent price decrease pic.twitter.com/fBeEGUP6P8
— IntoTheBlock (@intotheblock) July 13, 2024
CryptoQuant noted that the pace of coin accumulation reached its highest since April 2023, considering a 30-day timeframe. During this period, bitcoin whales received 85,000 BTC.
#Bitcoin whales are accumulating at their fastest rate since April 2023: CryptoQuant
Dheet hodlers have accumulated 85K #Btc in the last 30 days. pic.twitter.com/UxewR8omHZ— Crypto India (@CryptooIndia) July 10, 2024
Analyst Minkyu Woo of the organization considers this a signal of bottom formation.
These whales have bought over 47,000 #BTC at an average price of $57K.
This suggests that the bottoming out of #BTC may be nearly complete.#BTC #Bitcoin pic.twitter.com/MpNqAETAqZ
— 우민규 (Woominkyu) (@Woo_Minkyu) July 10, 2024
Santiment supported these views, citing a reduction in long positions by small traders (with balances of less than 10 BTC).
?? Bitcoin whale and shark wallets are increasing in number while small traders sell off their bags during this dip period. July has seen a net increase of +261 wallets that now hold at least 10 BTC, which should give traders comfort in a long-term bullish future. pic.twitter.com/y0BwKDxNGm
— Santiment (@santimentfeed) July 11, 2024
“[This] should instill confidence in a long-term bullish future,” noted the experts.
Meanwhile, on-chain analysts at Whale Alert recorded the activation of a “dormant” wallet for nearly 12 years, which moved 1,000 BTC worth ~$60 million.
Bitwise CIO Matt Hougan predicted bitcoin’s rise to $100,000 by the end of the year.
Earlier, Standard Chartered maintained expectations for the leading cryptocurrency’s return to its all-time high in August and subsequent rise to $100,000 by the US presidential elections in November.