Crypto News

Behind Bitcoins Surge Above $64,000: Here Are The Key Drivers of the Current Rally

Behind Bitcoins Surge Above $64,000: Here Are The Key Drivers of the Current Rally
© Copyright Image: Crypto Breaking News

Bitcoin price has rallied above the $64,000 mark. Glassnode, a market intelligence platform, has analyzed this notable increase, which attributes the current price movement to a significant easing of sell-side pressure, particularly from the German government.

Exhaustion of Sell-Side Pressure

According to the on-chain data provided by Glassnode, the recent uptick in Bitcoins price is largely due to what they describe as the complete exhaustion of sell-side forces, particularly those stemming from the recent governmental actions.

Over the past weeks, the German government has been a big seller, selling off tonnes of Bitcoin, leading to an earlier price decrease at below $54,000.

Nevertheless, despite these sales, the market has not moved lower than that mark, suggesting that this selling was anticipated and factored into prices by the markets. Glassnodes report highlights that from July 7 to July 10, approximately 39,800 BTC flowed out of labeled wallets, marking a critical phase of market absorption.

Also contributing to the price surge, as highlighted by Glassnode are inflows into Bitcoin exchange-traded funds (ETFs), which have garnered renewed investor attention in recent weeks. Over the last week, ETFs have reported over $1 billion in inflows, suggesting a renewed confidence in Bitcoin among institutional investors.

Glassnode noted in the report:

As prices sold off towards the $54k low, they dropped below the average inflow cost basis of ETF holders, which is currently at $58.2k. In response, the ETFs have seen their first significant tranche of positive interest since early June, with over $1B in total inflows last week alone.

Furthermore, the decline in exchange flows deposits and withdrawals remains a significant sign of waning sell-side pressure. Lower exchange flows generally indicate reduced market liquidity and selling, which can provide price support or an upward momentum.

Current exchange volumes have cooled off at about $1.5 billion daily, unlike the higher marks seen in March.

Major Rally for Bitcoin On The Horizon?

As Bitcoin maintains its position above $64,000, showing an 11.5% increase over the past week, the market appears increasingly bullish.

Insights from prominent crypto analyst Rekt Capital indicates that overcoming $65,000 might see Bitcoin enter a new high price cluster zone one that can push BTC towards as much as $71,500.

Additionally, whale activity continues to demonstrate confidence in Bitcoins long-term value. Recent transactions highlighted by Lookonchain, such as a notable whale purchasing 245 BTC for nearly $16 million, underscore the strategic accumulation amidst this rally.

Featured image created with DALL-E, Chart from TradingView

Source: NewsBTC.com

The post Behind Bitcoins Surge Above $64,000: Here Are The Key Drivers of the Current Rally appeared first on Crypto Breaking News.

Read more: https://www.cryptobreaking.com/behind-bitcoins-surge-above-64000-here-are-the-key-drivers-of-the-current-rally/

Text source: Crypto Breaking News

Disclaimer: Financial information and news are not financial advice, read the disclaimer.
Buy & sell Crypto in minutes

Join BINANCE!

The world's largest crypto exchange

You're just steps away from receiving your reward.

The most complete Crypto News Center.

Search Stories:

Latest top stories