At the beginning of the week, sentiment in the cryptocurrency market is moderately positive, as seen primarily in the case of Ethereum. Friday's weakening of the U.S. dollar and the rally in the U.S. stock market failed to unseat Bitcoin, however, and the latter is trading steadily around $68,000. The market is reading further 'positive' signals for Bitcoin, coming from American politics.
Trump supports Bitcoin
- Donald Trump, whom Polymarket gives a 58% chance of winning the U.S. presidential election in the fall, has indicated that he is very open to anything related to cryptocurrencies and under his term, the United States will play the role of the No. 1 country for the entire crypto sector. He estimated that it will be the States that will create the expansion of Bitcoin's infrastructure, and related innovations will be created in the United States.
- Trump also announced that he would free the incarcerated founder of Silk Road (an illegal darknet marketplace that used the Bitcoin blockchain for payments), Ross Ulbricht, who has been sentenced to double life imprisonment for 11 years, and indicated that the States cannot afford to be 'second best' in the global crypto trend.
- According to political analysts, Trump intends to take advantage of the fact that there are approx. 50 million Bitcoin holders who are unhappy with many, recent comments by Democrats. Trump has already announced that he will support Bitcoin's right to self-storage and keep Elizabeth Warren and her supporters out of Americans' wallets. In previous years, Trump called Bitcoin a scam, but he has apparently changed his attitude
- Michael Saylor, CEO of Microstrategy, pointed out that ETFs on Bitcoin are further evidence of the strength of the BTC market and can indirectly support the listing of the largest cryptocurrency. Mitchnick, head of cryptocurrencies at BlackRock, pointed out that currently the valuation of both assets is still at an 'early stage'. However, he indicated that global investment capital will consolidate primarily around these two, digital assets, while the future of other altcoins still looks uncertain.
Bitcoin (D1 interval)
Bitcoin is still trading approx. 8% below historical highs and has managed to bounce about 20% from its April low near $57,000. A sustained break of the $70,000 barrier could make a rally in price, to the next ATH, likely.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appSource: xStation5
The liquidation/volume concentration map, on the world's largest crypto exchange, Binance, indicates significant levels between $68,300 and $69,500. Closing the week above $69,000 could indicate a growing appetite for risk. Source: Cointelegraph, Binance
Ethereum (D1 interval)
Bitcoin's price recorded a record high after reports of the SEC's acceptance of spot funds, but by then it had not managed to stay above $4,000. This psychological resistance level now remains the main task for the bulls. The ETH price is still nearly 30% below the 2021 ATH.
Ethereum interval M15
MVRV indicator (monthly interval)
The MVRV indicator of investor gains and losses, for addresses holding BTC from 1 day to 30 days during the last correction to $57,000 reached levels of twice the standard deviation, indicating panic among new short-term investors. Currently, the indicator is again positive and the average short-term holder of BTC, is recording a small profit. Source: Glassnode
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
