Rally

Bitcoin ETF

Bitcoin

Bitcoin True

<p>The world of Bitcoin (BTC) is no stranger to volatility and speculation. However, recent developments suggest a potential turning point for BTC after the German government selloffs. Hence, here are five reasons why Bitcoin price may be poised for a significant rally soon.</p> 
<h2 id="1-miner-capitulation">1. Miner Capitulation</h2> 
<p>Miner capitulation often signals a market bottom, and recent data indicates that <a href="https://coingape.com/bitcoin-altcoins-in-focus-market-eyes-ether-etf-fed-chair-comment-other-events/" target="_blank" rel="noopener">Bitcoin</a> miners are experiencing significant strain. The Bitcoin True Hashrate Drawdown percentage has hit 7.6%, levels comparable to when Bitcoin was trading at $16,000 during the FTX collapse.</p> 
<figure id="attachment_207459" aria-describedby="caption-attachment-207459" style="width: 100%" class="wp-caption aligncenter">
 <img decoding="async" class="size-large wp-image-207459" src="https://coingape.com/wp-content/uploads/2024/07/20240714_130609-1224x689.jpg" alt="" width="1224" height="689" srcset="https://coingape.com/wp-content/uploads/2024/07/20240714_130609-1224x689.jpg 1224w, https://coingape.com/wp-content/uploads/2024/07/20240714_130609-300x169.jpg 300w, https://coingape.com/wp-content/uploads/2024/07/20240714_130609-768x432.jpg 768w, https://coingape.com/wp-content/uploads/2024/07/20240714_130609-1536x864.jpg 1536w, https://coingape.com/wp-content/uploads/2024/07/20240714_130609-678x381.jpg 678w, https://coingape.com/wp-content/uploads/2024/07/20240714_130609-150x84.jpg 150w, https://coingape.com/wp-content/uploads/2024/07/20240714_130609.jpg 2048w" sizes="(max-width: 1224px) 100vw, 1224px">
 <figcaption id="caption-attachment-207459" class="wp-caption-text">
  Bitcoin Miner Capitulation, Source: Quinten Francois | X
 </figcaption>
</figure> 
<p>This level of capitulation implies that weaker miners are being forced to shut down their operations, which historically precedes a rebound in Bitcoin price. As these miners cease operations, the selling pressure they exert on the market decreases. This paves the way for a potential price recovery.</p> 
<h2 id="2-german-bitcoin-selloff-ends">2. German Bitcoin Selloff Ends</h2> 
<p>The German government recently concluded its extensive Bitcoin selloff, which had commenced on June 19. Over the past few weeks, the market has absorbed nearly $3.5 billion worth of Bitcoin liquidations. Despite this significant sell pressure, Bitcoin’s price has remained resilient at around $58,000. This stability amidst massive selloffs is a strong indicator of underlying market strength.</p> 
<p>Michaël van de Poppe, a notable crypto analyst, highlighted this resilience on social media platform X. He emphasized that the markets have effectively absorbed this immense sell pressure. With no further sell-offs from the German government anticipated, the absence of this substantial downward pressure could enable Bitcoin price to move upwards. The trend has already started with <a href="https://coingape.com/price/bitcoin/" target="_blank" rel="noopener">BTC price</a> surpassing $60,000.</p> 
<p><strong>Also Read:&nbsp;<a href="https://coingape.com/samson-mow-proposes-50k-bitcoin-buyback-to-german-lawmaker/" target="_blank" rel="noopener">Samson Mow Proposes 50K Bitcoin Buyback To German Lawmaker</a></strong></p> 
<h2 id="3-bitcoin-whale-accumulation">3. Bitcoin Whale Accumulation</h2> 
<p>Whale activity often plays a crucial role in the crypto markets, and recent data suggests a bullish trend. According to statistics from blockchain analytics platform IntoTheBlock, <a href="https://coingape.com/bitcoin-whales-ingest-71k-btc-in-1-week-price-rebound-ahead/" target="_blank" rel="noopener">Bitcoin whales</a> have acquired an additional 71,000 BTC over the last week. These whales took advantage of the dip caused by the German selloff.</p> 
<p>This substantial accumulation brings the total volume of whale transactions in the BTC network to an impressive $41.32 billion. Although there was an 8% drop in the 24-hour rate of change, the weekly surge in whale transactions has remained robust. The ongoing accumulation by these large holders drains the Bitcoin supply, often leading to a price surge.</p> 
<h2 id="4-global-inflows-into-bitcoin-etfs">4. Global Inflows Into Bitcoin ETFs</h2> 
<p>Bitcoin Exchange-Traded Funds (ETFs) around the world have seen remarkable inflows. Bitcoin ETFs in <a href="https://coingape.com/hong-kong-australia-bitcoin-etf-inflows-hit-record-high/" target="_blank" rel="noopener">Hong Kong</a> have increased their reserves by 28.6% since late June, amassing a total of 4,941 BTC as of July 13. In Australia, the Monochrome Bitcoin ETF (IBTC) has also attracted attention, nearing the 100 BTC mark since its launch.</p> 
<p>Meanwhile, the United States has witnessed its Bitcoin ETFs net inflows exceeding $1.1 billion in just one week. This marks the highest weekly inflow on record. This surge in ETF investments underscores the growing institutional appetite for Bitcoin. It could drive Bitcoin price higher as more capital flows into the market.</p> 
<h2 id="5-high-probability-of-fed-rate-cut">5. High Probability Of Fed Rate Cut</h2> 
<p>Economic indicators and Federal Reserve signals point to a high likelihood of an interest rate cut, which could significantly impact Bitcoin’s price. Bloomberg analyst Mike McGlone has predicted that the Federal Reserve will cut interest rates following a reversal in US equities.</p> 
<p>Historical parallels suggest that after the substantial rate hikes from 2004-2006, the first rate cut occurred in September 2007. Similarly, after the recent rate hikes totaling 525 basis points since the first quarter of 2022, a rate cut is anticipated in September.</p> 
<p>Despite the hot Producer Price Index (PPI) data for June, indicating persistent inflation, the <a rel="nofollow" href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html" target="_blank">CME FedWatch</a> tool shows a 90.3% probability of a rate cut in September. Lower interest rates typically lead to a weaker US dollar and increased investor interest in alternative assets like BTC. Hence, the Bitcoin price could see a significant growth.</p> 
<p><strong>Also Read:&nbsp;<a href="https://coingape.com/microstrategy-bitcoin-effect-midcap-non-profit-firms-convert-treasury-to-btc/" target="_blank" rel="noopener">MicroStrategy Bitcoin Effect: Midcap &amp; Non-Profit Firms Convert Treasury To BTC</a></strong></p> 
<p>The post <a href="https://coingape.com/5-reasons-why-bitcoin-price-is-poised-for-a-rally-soon/">5 Reasons Why Bitcoin Price Is Poised For A Rally Soon</a> appeared first on <a href="https://coingape.com">CoinGape</a>.</p>

5 Reasons Why Bitcoin Price Is Poised For A Rally Soon

Зміст

Coingape News Media

Інші статті, опубліковані 14 лип. 2024 р.

XRP price prediction – Expect bulls to run out of steam at THESE levels!

Join the Bearish Bear Revolution: $GROWL Presale Is Here!

Polkadot on the brink of a rally? Price chart suggests 84% upswing!

A Tech Maverick’s Path to Crypto Wealth: Can BlockDAG Dethrone Cardano with 30,000X ROI Potential?

Avalanche and Polygon Vie for Top Spot as Rollblock Anticipates Unmatched Bullish Surge

TRUMP, STRUMP, MAGA, MVP: How meme coins reacted after shooting at Ex-President’s rally

Приєднуйтеся до нашої безкоштовної розсилки для отримання щоденних оновлень щодо крипто!