Bitcoin Topped $68,000, What Has Driven The 17% Weekly Surge?

Bitcoin has gained around 17% since last weekend, which equates to around $9,000 over the past seven days or so.

The asset was trading below $60,000 last weekend but surged to a six-week high above $68,000 on July 22.

What has been driving market momentum for the past week, and will it continue?

Bitcoin Is Back

On July 22, industry research firm 10x Research provided a number of reasons for the big price pump. Firstly, there has been a shift in market sentiment when BTC broke above a key level at $61,133, changing the narrative from bearish to bullish.

The analysis added that retail trading had been driving weekend rallies with retail investors, which fueled weekend gains and positive momentum carrying into Monday.

This has been seen this weekend, with BTC gaining more than 6% since Friday. The asset hit a multi-week high of $68,480 during Monday morning trading in Asia.

Additionally, after four weeks of net liquidity outflows totaling $8 billion, crypto markets saw $3.3 billion in inflows last week.

“This influx, primarily from futures, stablecoins, and spot Bitcoin ETFs, marked a positive trend change.”

Last week, spot Bitcoin ETFs racked up around $1.24 billion in inflows over five trading days, as reported by CryptoPotato.

10 Reasons Why #Bitcoin Surged 10%

From Monday July 15

👇1-12) Often swayed by changing narratives, rumors, and speculation, Bitcoin can rapidly adjust its value based on new information. Since this past Friday, Bitcoin has surged by a significant 10%. What initially seemed…

— 10x Research (@10x_Research) July 21, 2024

Spot Ethereum ETF hype has also contributed to market gains, as all indications are that they are set to begin trading on July 23. However, ETH prices have only managed to gain 4.5% over the past week, lagging behind Bitcoin’s.

There have also been rumors suggesting that China might adopt a more favorable stance on crypto, with Hong Kong’s rules serving as a test, the analyst stated.

Additionally, markets in South Korea have been boosted by a proposed postponement of crypto taxation until 2028, spurring speculative trading.

Lower-than-expected CPI inflation data last week “set a floor for Bitcoin prices following a 20% peak-to-trough decline,” they added. This week will see PCE inflation reports released which could provide further bullish momentum.

U.S. politics have also been influential, with a failed assassination attempt on Donald Trump and President Joe Biden stepping down from the election race further bolstering crypto market sentiment.

Bullish Week Ahead?

On July 22, head of research at the firm, Markus Thielen, said that this week could see more momentum.

“Rumors are rife that the SEC may settle a major case, and former President Trump is set to deliver a highly anticipated speech in Nashville.”

There is speculation that Trump will announce BTC as a strategic reserve asset, “which could trigger a parabolic rise in Bitcoin’s price.”