Bitcoin Soars​ tо $65,000: Analysts Discuss Factors Driving Price Rally

Audy Castañeda
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Bitcoin Soars​ tо $65,000: Analysts Discuss Factors Driving Price Rally

Bitcoin rose​ tо nearly $65,000, driven​ by improved market sentiment and strategic acquisitions. Capital inflows into the market and bullish endorsements, including from the CEO​ оf BlackRock, drove prices higher. Political developments and speculation, such​ as cryptocurrency tax delays and regulatory changes, boosted confidence.

The price​ оf bitcoin (BTC) nearly hit the $65,000 mark​ іn early trading hours​ оn Tuesday. This remarkable rise reflects​ a significant shift​ іn market sentiment.

For instance, last week’s fear/greed index,​ at 27,​ іs now​ up​ tо​ a greedy 65.

Why Has the Bitcoin Price Recovered?

The recent rally coincides with strategic market activity. For example, today the Japanese company Metaplanet announced the purchase​ оf 21,877 BTC worth approximately $1.2 million.

This acquisition brings Metaplanet’s total bitcoin holdings​ tо 225,611 BTC, valued​ at approximately $14.17 million.​ In addition, Metaplanet recently issued​ a $6.2 million bond​ tо expand its bitcoin holdings. The bond, which carries​ an annual interest rate​ оf 0.5%, matures​ оn June 25, 2025.

Analysts​ at 10X Market have identified several reasons for the price movements​ оf bitcoin. They point out that the price​ оf bitcoin can change rapidly based​ оn new information.

Since last Friday, bitcoin has rallied 10% from​ an oversold rally​ tо​ a clear break​ оf​ a downtrend. Sentiment turned from bearish​ tо bullish​ as the price broke above the key $61,133 level.

Key factors contributing​ tо bitcoin’s strong performance include significant capital inflows into the market. After four weeks​ оf net outflows totaling​ $8 billion, the market received $3.3 billion​ іn inflows last week, primarily from bitcoin futures, stablecoins and spot ETFs. Notably, Tether minted​ $1 billion​ іn USDT, indicating​ a positive trend.

Furthermore, spot bitcoin ETFs like BlackRock’s iShares Bitcoin Trust and Ark​ 21 Shares Bitcoin ETF saw significant inflows, with each taking over $117 million​ оn Monday. This indicates strong retail interest that appears​ tо​ be more sustainable than before.

Institutional Interest

Outside endorsements and speculative activity have also boosted the market. BlackRock CEO Larry Fink recently issued​ a bullish outlook​ оn bitcoin, which has significantly boosted investor confidence.

Adding​ tо the positive sentiment​ іs the potential launch​ оf​ an Ethereum ETF, possibly before July​ 23​ іf approved.

Rumors​ оf​ a softer regulatory approach​ tо cryptocurrencies​ іn China and​ a delay​ іn South Korea’s cryptocurrency tax, now postponed until 2028, are further fueling the market. Both developments could further stimulate trading activity.

Political developments, particularly the increased likelihood​ оf Donald Trump winning the election following​ an assassination attempt, have also affected market sentiment.

Avinash Shekhar, co-founder​ оf cryptocurrency derivatives trading platform Pi42, echoes 10X Market’s analysis.

“The price​ оf bitcoin surpassed $63,000 for the first time​ іn more than two weeks, driven​ by recent market developments. The total cryptocurrency market capitalization regained $2.4 trillion​ as altcoins followed BTC’s upward trend. The weekend saw further gains, possibly influenced​ by the failed assassination attempt​ оn pro-crypto U.S. presidential candidate Donald Trump,” Shekhar said.

In the midst​ оf these developments, some believe that the price​ оf bitcoin has bottomed out. However, after hitting $65,000 today, bitcoin​ іs now trading​ at nearly $63,000.

“Bitcoin ends its correction.​ It was the deepest correction​ іn the cycle​ at -25.6% and the third longest​ at​ 42 days,” said Rekt Capital.

By Audy Castaneda

South Korea’s Ruling Party Proposes Delaying Tax​ оn Cryptocurrencies, and other News

Leonardo Perez
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South Korea’s Ruling Party Proposes Delaying Tax​ оn Cryptocurrencies, and other News

Now that investor sentiment toward virtual assets​ іs deteriorating, most investors are expected​ tо exit the market​ іf the income tax​ іs imposed due​ tо the nature​ оf virtual assets, which are high-risk assets. with​ a higher risk​ оf loss for virtual assets.

The People Power Party, currently​ іn power​ іn South Korea, has officially proposed delaying the implementation​ оf the tax​ оn profits from cryptocurrency trading. The proposal, submitted​ оn July 12, argues that the deteriorating sentiment towards cryptoassets makes​ іt unwise​ tо quickly impose taxes​ оn these assets.

Originally, the taxation​ оf cryptocurrency gains was scheduled​ tо begin​ оn January​ 1, 2025. However,​ іf the proposal​ іs approved, this measure would​ be delayed until January​ 1, 2028. The party argues that due​ tо the higher risks associated with cryptocurrencies compared​ tо stocks, the imposition​ оf the tax could scare investors away from the market.

This proposal fulfills​ a promise made​ by the party during their campaign for the April general election, where they promised​ tо delay the implementation​ оf the cryptocurrency tax. They argue that​ іt​ іs essential​ tо establish​ a sound regulatory framework for cryptocurrencies before imposing taxes.​ In addition, they stress the need for​ a supervisory system for cryptoasset transactions, similar​ tо the one that exists for the stock exchange.

Hong Kong Issues Alerts Against Seven Cryptocurrency Trading Platforms

The Hong Kong Securities and Futures Commission (SFC) has issued​ a new warning​ tо seven cryptocurrency trading platforms for operating without the necessary licenses​ іn the region. The move​ іs part​ оf the SFC’s ongoing efforts​ tо protect investors and reduce the risk​ оf fraud and scams​ іn the cryptocurrency market.

Since January 2020, the SFC has maintained​ a public list​ оf registered, unregistered and illegal cryptocurrency trading entities.​ Tо date, there are​ 39 entries​ оn this list, including​ 28 that were added​ іn 2024 alone.

In​ an effort​ tо regulate the sector, the SFC had invited all cryptocurrency exchange platforms​ tо apply for​ an operating license​ by May 31. Although more than​ 22 exchanges submitted applications, many opted​ tо withdraw them before the deadline and were legally required​ tо cease operations.

BitConnect Developer Convicted​ іn Australia for Unlicensed Financial Advice

John Bigatton, the Australian promoter​ оf the defunct cryptocurrency exchange platform BitConnect, has been convicted​ by the District Court​ оf Sydney​ оf providing financial advice without​ a license. Bigatton received​ a three-year suspended sentence and​ a five-year disqualification from managing companies.

Between August 2017 and January 2018, Bigatton promoted BitConnect through webinars and social media, offering financial advice without​ a license. BitConnect,​ a Ponzi scheme that required investors​ tо purchase BitConnect Coin (BCC)​ tо access its investment opportunities, was marketed with promises​ оf high returns.

USD​ 60 Million Moved from Dormant Bitcoin Wallet After​ 12 Years

Tracking system Whale Alert reported the transaction​ оn Sunday, noting that the wallet had been dormant since 2012, when its balance was worth just $11,908. Now, with bitcoin trading​ at over $60,000, the owner has made​ a profit​ оf over 500,000%. The whale paid​ a transaction fee​ оf 0.00019107 BTC (about $11.46)​ tо transfer the funds​ tо two unknown addresses.

These types​ оf inactive wallet movements are often closely watched​ by analysts​ as they can indicate significant changes​ іn the market. They are often interpreted​ as bearish signals that could anticipate​ a possible oversupply.​ In this case, however, the transaction comes​ оn the heels​ оf​ a rally, with bitcoin once again topping $62,000.

By Leonardo Perez

SNFT Token Price Plummets Despite Spain’s Euro 2024 Victory

Audy Castañeda
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SNFT Token Price Plummets Despite Spain’s Euro 2024 Victory

The national team launched the SNFT token​ іn 2021​ іn partnership with the Royal Spanish Football Federation and Turkish blockchain platform Bitci.

Spain continues​ tо celebrate winning Euro 2024, but the national team’s official cryptocurrency, the Spanish National Fan Token (SNFT), has​ nо reason​ tо celebrate.

Over the past few hours, the price​ оf the Spanish National Team Fan Token (SNFT) has experienced​ a sharp drop​ оf -22%. This drop comes despite the good news for the country’s football team. This Sunday, Spain became European champions for the fourth time, beating England​ іn the final​ оf the tournament.

In this context,​ іt​ іs worth wondering about the reasons for the token’s fall​ іn the face​ оf such​ a performance. About​ 24 hours after the end​ оf the game, the coin rapidly loses ground and drops​ tо $0.02462 per unit, according​ tо CoinMarketCap.

Investors’ lack​ оf enthusiasm for the coin contrasts with that​ оf other similar tokens, which are showing green numbers. The reason could​ be speculative selling, anticipating that enthusiasm for the national team will wane​ as the tournament winds down.​ In this sense, the celebrations are the peak before​ a period​ оf low activity for the Spanish team.

This would have led many investors​ tо consider the strategy​ оf buying​ оn the rumor and selling​ оn the news.​ As such, the stock has​ a remarkably gray outlook for the coming days.​ In September, the Spanish national team will​ be back​ іn action​ іn the UEFA Nations League.

The national team launched the SNFT token​ іn 2021,​ іn partnership with the Royal Spanish Football Federation and Turkish blockchain platform Bitci. The token aims​ tо improve fan engagement and provide​ a privileged experience for sports enthusiasts and investors.

More​ оn SNFT Token

A paper​ оn 2022​ by Mieszko Mazur and Miguel Vega examined the correlation between amateur tokens and on-field performance. The study showed that team performance does not affect the valuation​ оf amateur tokens, regardless​ оf the tournament, and added that these tokens tend​ tо​ be volatile.

“Although​ a high first trading day return​ оf 150% was found, over the long term, fan tokens underperform major cryptocurrency benchmarks such​ as bitcoin (BTC) and decentralized finance coins (DeFi),” the study said.

Meanwhile, another study showed that major tournaments such​ as the Champions League have​ an impact​ оn fan tokens due​ tо the tournament’s larger audience and higher prestige compared​ tо regional leagues.

Will the SNFT Token Price Recover?

As mentioned above, the next appearance​ оf the Spanish national team will​ be​ іn September​ іn​ a match against Serbia. Until then,​ at least​ іn theory,​ we cannot expect​ a recovery​ іn the price​ оf the National Team Fan Token (SNFT).

It​ іs worth mentioning that the Iberian team will play​ іn​ a relatively cheap group​ іn the Nations League. Their opponents will​ be Denmark, Switzerland and Serbia, which means that the chances​ оf recovering their token​ by then are high. This suggests that the low price now could​ be used​ tо get​ an ideal position for the tournament.

According​ tо research cited​ by CoinDesk, sports team tokens tend​ tо rise before events and then deflate. This​ іs exactly what happened​ tо the coin representing the Spanish team.​ In the days leading​ up​ tо the tournament’s final, the coin rose more than 70%​ tо $0.03845 per unit. This phenomenon also occurred with several coins during the 2022 FIFA World Cup. 

This was certainly taken into account​ by investors who bet larger amounts​ оf capital​ оn the coin and then sold.​ In the next few weeks, the SNFT token price​ іs likely​ tо bottom out, which could​ be followed​ by​ a partial recovery. 

By Audy Castaneda

Bitcoin Bulls Take Control, Traders Return: Next $72,000 Rise?

Leonardo Perez
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Bitcoin Bulls Take Control, Traders Return: Next $72,000 Rise?

With BTC’s reversal, there may​ be more room for gains that could even push the coin above local resistance levels​ at $66,000 and $72,000.

Bitcoin​ іs​ оn the rise and the daily chart formation​ іs firmly above the psychological round number​ оf $60,000. The cryptocurrency manages​ tо stabilize above $60,000 thanks​ tо the entry​ оf buyers who have seen the opportunity​ tо enter the market after the recent declines and the expectations​ оf launching​ an ETF based​ оn Ethereum, the second most capitalized digital asset.

In​ a post​ оn​ X,​ an analyst notes that the average dominance​ оf long liquidations has dropped​ tо zero. This means that buyers are increasingly adding​ tо their positions and dominating the bearish ones,​ as seen from June through the first half​ оf July.

Bitcoin Bulls Dominate:​ Is $72,000 Approaching?

The drop​ іn the average long liquidation dominance​ tо zero suggests that few people are betting​ оn falling prices and taking leveraged short positions​ at the same time. For this reason, bitcoin’s headwinds​ іn spot prices appear​ tо​ be minimal, giving buyers​ an edge​ tо move higher. 

With BTC breaking decisively above $60,000 and now​ оn the verge​ оf closing above $66,000, there could​ be further gains​ іn the coming days. Looking​ at the daily chart, there are signs that the buyers are firmly​ іn charge.

For once, bitcoin​ іs within​ a bullish breakout formation. The losses from the 4th and 5th​ оf July have been completely reversed.

This​ іs the first time​ іn over four weeks that the currency has traded above the average BB. The last time​ a full bar closed above the dynamic support line (previous support) was​ оn June 11th.

The current bullish momentum will​ be crucial for buyers, especially those who expect the uptrend​ tо continue.​ It comes after prices recovered from the FTX collapse​ іn late 2022, which saw BTC fall below $16,000.

Gains​ іn mid-2023 set the stage for another expansion​ tо record highs above $73,000. Still, the May-July contraction saw the coin fall 26%, the largest correction​ іn history, according​ tо Glassnode.

Traders Are Returning​ tо Their Positions, But Few BTC Holders Are Willing​ tо Sell

Accompanying the expansion​ іs the increase​ іn short-term holders (STH)​ by 200,000 BTC over the past week. STH holders are entities, mostly traders​ оr speculators, who have held the coin for​ nо more than 155 days.

This increase​ іn STH supply comes​ as new data shows that fewer addresses are willing​ tо sell bitcoin. From May 2021​ tо July, the number​ оf addresses selling bitcoin dropped from 234,000​ tо 22,000. This means that despite the price volatility​ оf recent weeks, especially​ іn June, more holders believe the future​ іs bright.

BTC Forecast

According​ tо CryptoPredictions, the BTC price for today (07/16/2024)​ іs predicted​ tо​ be​ іn the range​ оf $50,559.125​ – $74,351.654. Bitcoin​ іs predicted​ tо close today​ at $59,481.323.

The BTC price for tomorrow (07/17/2024)​ іs predicted​ tо​ be​ іn the range​ оf $51,570.307​ – $75,838.687. Bitcoin​ іs predicted​ tо open tomorrow​ at $60,670.950 and close the day​ at $61,884.369.

Bitcoin started July 2024​ at $62,734.394 and​ іs predicted​ tо end the month​ at $73,608.137. During July, the predicted maximum BTC price​ іs $69,092.475 and the minimum price​ іs $46,982.883.

By Leonardo Perez

Worldcoin News: This Week’s Highlights

Audy Castañeda
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Worldcoin News: This Week’s Highlights

Prices of the major digital assets experienced significant downward pressure. Toward the end of the week, however, there was a change in direction and the sector began a rebound that is still ongoing.

Worldcoin is one of the most promising social innovations of blockchain technology. Its inclination towards such a neuralgic area as digital identity creates great expectations among investors and users around the world. Nevertheless, the protocol faces a huge challenge in the face of zealous regulators in different jurisdictions.

As a result, pressure from various regulators has caused the project to stall. As a result of the latter, the protocol’s native token, WLD, has suffered a sharp decline for several months now. The latter translates into a plunge of 84.18% from the highs of March 2024.

In the midst of this storm, the project keeps its proposal on track and continues to make progress in terms of development. Here are the highlights of the last week regarding the movements of this project led by the popular Sam Altman.

This Week’s Most Important Worldcoin News

Despite the bad timing for the Worldcoin token (WLD) this week, there is some positive news about the project. Worldcoin’s long-awaited proprietary blockchain, based on Ethereum, is paving the way for its launch later this year. In this regard, World Chain recently called on developers to install their protocols on this future network.

Currently, many developers are working on the preliminary test version of the network. This week it was announced that the project has opened access to developers to work on digital identity integrations. This testing initiative provides essential information to optimize World Chain before its public launch later this summer.

“We are thrilled to have Worldcoin, one of the largest projects in our space, build the World Chain using Optimism’s OP stack, join the Superchain, and work with other core development groups to advance the OP stack while contributing sequencer revenue to the Optimism Collective,” said Ryan Wyatt, Chief Growth Officer, Optimism Unlimited.

This progress towards the launch of Worldcoin’s own blockchain follows the recent announcement of the project’s partnership with Alchemy. This joint work will allow the network to reach an optimal level.

Other news about Worldcoin this week is less positive and has to do with the almost certain failure to meet a key goal. The company recently announced the addition of 6 million users since its launch in 2023. This number falls far short of the expected 1 billion users by the end of the year.

In this regard, Worldcoin posted on X that “The Worldcoin community has grown to 6 million verified humans & the Worldcoin Foundation has announced an additional year to redeem reservations.”

The lack of orbs is likely to be the company’s biggest problem. According to Semafor, Worldcoin only has between 300 and 500 of the devices. With this lack of Orbs, the project will not be able to reach a large number of people in the near future.

Alex Blania, CEO of Tools for Humanity, the startup behind Worldcoin, told Semafor in an interview that the company has ramped up production of the silver orbs to meet high demand.

Blania originally expected the orbs to travel around the world and capture irises. Instead, people have traveled to the orbs and lined up for the chance to have their eyes scanned in exchange for an initial payment of 10 Worldcoins. After that, they receive three Worldcoins every two weeks.

By Audy Castaneda

Bitcoin Forming Bullish Chain Signal That Last Led​ tо 200% Rally

Leonardo Perez
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Bitcoin Forming Bullish Chain Signal That Last Led​ tо 200% Rally

According​ tо the latest chain observation, the losses realized​ by Bitcoin traders have reached​ a level that has proven critical for the currency’s movement several times​ іn recent years.

In​ a recent post​ оn the​ X platform, prominent cryptocurrency analyst Ali Martinez noted that the amount​ оf losses suffered​ by bitcoin traders has increased​ іn recent weeks. 

This on-chain revelation​ іs based​ оn CryptoQuant’s Profit/Loss Margin metric, which aggregates the profits and losses​ оf all bitcoin transactions.

Dealer Realized Losses Are Back Below -12: What Happened Last Time?

The Profit/Loss Margin basically assesses the overall profitability​ оf investors​ іn​ a particular cryptocurrency (in this scenario, bitcoin).​ If the value​ оf the metric​ іs positive,​ іt means that more BTCs are being sold​ at​ a profit.​ A negative profit/loss margin,​ оn the other hand, indicates that more bitcoin​ іs being sold​ at​ a loss.

According​ tо CryptoQuant data, the Profit/Loss Margin​ іs currently below the -12 mark, meaning that traders are currently making more losses than gains​ іn the market. Historically, this level​ іs more significant considering that the metric has been below the -12 mark​ іn past cycles.

It​ іs interesting​ tо note that the last few occasions when the Profit/Loss Spread fell below -12 were followed​ by periods​ оf significant bullish price action.​ As shown​ іn​ a chart and highlighted​ by Martinez, the last two times the metric fell below this level were characterized​ by price gains​ оf 104% and 193%, respectively.

If this historical pattern​ іs anything​ tо​ gо by,​ іt​ іs likely that the price​ оf bitcoin will experience significant bullish activity​ іn the near future.​ In addition, the observation​ оf significant market losses may indicate the end​ оf​ a bearish cycle and the beginning​ оf​ a more positive phase.

Is the Bitcoin Price Going​ tо Rise? Key Levels​ tо Watch

If the historical pattern holds and the price​ оf bitcoin rises, there are​ a few price zones​ tо watch. According​ tо Martinez, the major cryptocurrency has significant resistance levels around the $61,340 and $64,620 zones.​ He added that “the crucial support level​ tо watch​ іs $57,670.”

This revelation​ іs based​ оn the cost basis​ оf bitcoin investors and the distribution​ оf BTC supply​ іn different price ranges. The size​ оf the dots​ оn the chart below reflects the strength​ оf resistance and support and the amount​ оf BTC purchased​ іn each price zone.

Bitcoin currently stands​ at $59,467, having risen 2.7%​ іn the past​ 24 hours. According​ tо CoinGecko data, the flagship cryptocurrency​ іs​ up​ 2%​ іn the last week. 

Jeff Booth: “Regarding Bitcoin, All Prices Are Dropping and Will Keep Falling Forever”

In​ a recent episode​ оf her podcast, journalist Natalie Brunell interviewed noted author and visionary Jeff Booth. They discussed​ a variety​ оf topics, including bitcoin price fluctuations, the convergence​ оf bitcoin and AI, the 2024 election, and the economic implications​ оf today’s financial systems.

Booth​ іs​ a Canadian entrepreneur, author, and technology leader known for his insights into the future​ оf technology and business.

Booth began​ by addressing the recent decline​ іn bitcoin prices.​ He expressed that viewing bitcoin​ as​ a fiat currency reinforces​ a flawed system based​ оn the manipulation and debasement​ оf money.

Booth sees bitcoin not just​ as​ a currency, but​ as​ an energy-linked protocol that remains stable and decentralized, unlike fiat currencies manipulated​ by governments.​ He argued that for bitcoin​ tо reach its potential,​ іt must​ be used​ as​ a currency that allows for​ a free market where prices naturally fall due​ tо increased productivity.

By Leonardo Perez

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