Bitcoin is soaring collectively!
Today, major Bitcoin varieties collectively surged, with gains exceeding 3% at one point, reaching a price of around $61000, a nearly 20% increase from the lowest point on August 5th. At the same time, the Asia Pacific market also rose across the board in early trading. Obviously, the prices of major global risk assets have received some impetus.
Analysts believe that there are three main reasons:
Firstly, the September interest rate cut of the US dollar is basically confirmed. On the early morning of August 22nd Beijing time, the minutes of the Federal Open Market Committee's July 30-31 meeting showed that Federal Reserve officials were strongly inclined to cut interest rates at the September policy meeting, with several officials even suggesting immediate cuts.
Secondly, some members of the US presidential campaign team have stated that Harris intends to support measures that will help develop the cryptocurrency industry.
Thirdly, Michael Saylor, CEO of Micro Strategy, once again hinted through his latest tweet that it is possible to purchase a large amount of Bitcoin.
Soaring across the entire line
From the perspective of the entire cryptocurrency, although its performance is not as strong, Bitcoin, the largest variety, has shown significant fluctuations. The data shows that all major varieties of Bitcoin once rose by more than 3%, returning to the level of over 60000 US dollars, and then their gains declined slightly.
Analysts believe that the driving force mainly comes from three directions:
Firstly, there is little doubt that the Federal Reserve will cut interest rates in September. At 2:00 am Beijing time on August 22nd, the Federal Reserve released the minutes of its latest interest rate meeting. The minutes of the meeting showed that Federal Reserve officials were strongly inclined to cut interest rates at the September policy meeting in July, with several officials even suggesting an immediate rate cut. This meeting minutes drove the rebound of the US stock market and also led to a strong opening performance in the Asia Pacific market this morning.
Secondly, US presidential candidate Harris intends to support measures that will help develop the cryptocurrency industry. According to a national poll conducted by polling firm Five Thirty Eight, Harris currently leads with a support rate of 46.7%, while Trump's support rate is 43.8%. Meanwhile, in several swing states, Harris has a higher lead in opinion polls. According to poll data, Harris leads Trump with a 50% to 46% approval rating. From July 24th to August 14th, Harris' national average polls have been leading Trump, and his lead is expanding. In addition, Harris has raised approximately $500 million since becoming the Democratic presidential candidate. In addition, Trump previously announced that he would support cryptocurrency. It can be said that in terms of policies, the cryptocurrency market may not need to worry.
Thirdly, Michael Saylor, CEO of Micro Strategy, once again hinted through his latest tweet that it is possible to purchase a large amount of Bitcoin. Saylor posted a short message on social media X stating 'we will need a bigger truck' with a Bitcoin tag attached. This tweet immediately sparked speculation in the cryptocurrency community that Micro Strategy may soon take a big step towards acquiring Bitcoin. According to Crypto Potato, earlier this month Micro Strategy announced plans to raise $2 billion by selling the company's stock to purchase more Bitcoin. In the second quarter of 2024, the company purchased 12222 bitcoins worth $805 million, increasing its total ownership of bitcoins to 226500 bitcoins at a total cost of $8.3 billion.
Variables still exist
According to Arkham, 10000 bitcoins (approximately $600 million) have been transferred to the Coinbase Prime wallet, originating from sources related to the US government. About two weeks ago, the US Department of Justice apparently sent $2 billion worth of confiscated bitcoins to an unidentified wallet, which may be part of the bitcoins confiscated by the Department from the now defunct Silk Road dark web market.
According to Arkham, in April of this year, a wallet holding over 30000 bitcoins (approximately $1.8 billion) appeared to have sent a test transaction of 0.001 bitcoins to another wallet belonging to Coinbase Prime. At the end of 2023, a US appeals court finalized an authorization to officially confiscate nearly 70000 bitcoins (approximately $4.2 billion) and other cryptocurrencies related to the Silk Road. Haitong International predicts that Bitcoin still faces selling pressure.
In addition, in a recent large-scale operation across Germany, financial regulatory and law enforcement agencies confiscated nearly 250000 euros in cash and closed 13 cryptocurrency ATMs that were operating without proper authorization. The German Federal Financial Supervisory Authority announced the results of this coordinated effort in a statement on Tuesday local time, emphasizing concerns about money laundering risks associated with unregulated cryptocurrency exchanges.
It is worth mentioning that since April, the demand for Bitcoin has significantly slowed down. On chain data shows a significant decrease in demand, turning into negative growth in August. This year, the reward for Bitcoin mining has been halved, from 6.25 bitcoins to 3.125 bitcoins. The halving of Bitcoin has had a significant impact on the mining landscape by reducing block rewards, directly affecting profitability. The decrease in rewards is also consistent with the flat performance of Bitcoin prices.
According to last week's data, the US Bitcoin spot ETF recorded a net inflow of $32 million, while the US Ethereum spot ETF recorded a net outflow of approximately $14 million. The Hong Kong Bitcoin spot ETF recorded a net inflow of $500000. The trading volume of Bitcoin and Ethereum spot ETFs in the United States and Hong Kong has decreased compared to the previous week.