Bitcoin (BTC-USD) enthusiasts are eyeing a major milestone as the cryptocurrency aims to hit $70,000. This bullish outlook comes amid mounting optimism fueled by the possibility of a crypto-friendly U.S. administration under former President Donald Trump.
Bitcoin Heads for $70K
Traders and analysts are expecting BTC to possibly hit $70,000, buoyed by a favorable macroeconomic environment and less selling pressure from key wallets. Lucy Hu, a senior analyst at Metalpha, noted that recent market movements show a positive outlook driven by political developments. In a message to CoinDesk, she said, “The rebound in Bitcoin price shows the market has a more optimistic outlook in the near-term macro environment.”
Political Developments
Trump’s pick of Ohio senator JD Vance, who’s known for his crypto-friendly stance, has raised hopes for supportive crypto policies. Vance’s BTC holdings, worth up to $250,000, highlight his alignment with digital assets and hint at potential changes in regulatory and economic policies.
Furthermore, Nick Ruck, head of growth at BitU Protocol, emphasized the evolving U.S. political landscape’s potential impact on crypto markets: “A change in perspective on the digital assets industry in the U.S. is creating expectations of more favorable policy toward Bitcoin and crypto.”
Impact of Fed Policies and Mt. Gox
Despite the bullish sentiment, experts warn that BTC’s trajectory could be affected by Federal Reserve policies and the ongoing Mt. Gox saga. The Fed’s moves, especially its interest rate decisions, can really sway BTC’s price. When rates go up, riskier assets like Bitcoin might lose their appeal, which could slow down its price growth. On the flip side, looser policies could give Bitcoin a boost as investors chase higher returns.
The Mt. Gox saga revolves around the bankruptcy and ongoing repayment issues of the failed exchange, which lost a staggering 850,000 BTC back in 2014. As these repayments go out to creditors, Mt. Gox is selling off their BTC. This flood of supply is putting pressure on prices. Lucy Hu, a senior analyst at Metalpha, emphasizes the importance of monitoring these factors, noting, “BTC could hover around the 120-day moving average, and prices might have enough momentum to climb to $68k or even $70k.”
Bitcoin saw some ups and downs recently, dropping to $53,500 in early July amid concerns about Mt. Gox repayments. However, the emptying of Bitcoin wallets linked to the German state of Saxony and Trump’s supportive stance on crypto have helped restore investor confidence.
At the time of writing, BTC is sitting at $65,039.
Key Takeaway
As BTC eyes $70,000, spurred by favorable political developments and reduced selling pressures, investors are cautiously optimistic. Economic growth indicators such as GDP growth rates and unemployment figures, along with technical indicators like moving averages and trading volumes, will play crucial roles in guiding Bitcoin’s trajectory.
