According to Institutional Crypto Research 10x Research: Bitcoin has surged by a remarkable 10% since this past Friday, breaking out from a downward trend and shifting market sentiment from bearish to bullish. Here are the 10 key reasons behind this surge:
1. Retail Trading and Weekend Rallies
Weekend rallies, often driven by retail trading and optimism, played a significant role. This past Monday, Bitcoin's momentum was sustained by several positive factors, with trading signals indicating buys for MakerDAO (+14.2%), AAVE (+3.4%), and Polkadot.
2. Net Liquidity Inflows
After four weeks of net liquidity outflows totalling $8 billion, the crypto markets experienced $3.3 billion in inflows last week. This positive trend change was fueled by futures, stablecoins, and Bitcoin Spot ETFs, along with Tether minting $1 billion in USDT.
3. Bitcoin Spot ETFs
Bitcoin Spot ETFs saw $0.5 billion in inflows over the last seven trading days, demonstrating strong retail interest. While institutional arbitrage players remained absent, sustained retail flow contributed to the surge.
4. Larry Fink's Endorsement
Blackrock CEO Larry Fink's bullish interview on Bitcoin, where he expressed newfound optimism after studying its investment opportunities, boosted market confidence.
5. Ethereum ETF Speculation
Rumours of an upcoming Ethereum ETF, potentially starting trading on July 23, have generated positive sentiment. The SEC's request for final S-1 applications by July 17 suggests an imminent approval.
6. Positive Historical Trends
Historically, crypto markets rally ahead of major listings, such as the December 2017 Bitcoin futures listing, the April 2021 Coinbase listing, and the January 2024 Bitcoin Spot ETF listing.
7. China's Potential Shift
Unsubstantiated rumours suggest China might adopt a more favourable stance on crypto, with Hong Kong's crypto rules as a test. Speculation that Chinese mainland investors may soon buy Hong Kong-listed Bitcoin Spot ETFs has influenced the market.
8. South Korea's Crypto Tax Delay
South Korea's ruling party has proposed delaying the crypto tax until 2028, originally set for January 1, 2025. This delay has spurred speculative trading activity in the region.
9. Dovish CPI Print
Last week's lower-than-expected CPI print set a floor for Bitcoin prices following a 20% peak-to-trough decline. The end of significant sell flows from the German State of Saxony also removed a negative overhang.
10. Political Developments
The attempted assassination of Trump has increased his re-election chances, which some believe could positively impact crypto sentiment. Trump is scheduled to speak at a Bitcoin conference later this month, and his Vice Presidential candidate, JD Vance, is a known Bitcoin supporter.
