Bitcoin rises close to 66,000! Why has it soared recently?

Bitcoin has rapidly risen back above US$60,000 in recent days. This morning (17th) it once reached US$66,000. As of writing, it has fallen back to US$65,712, with an intraday increase of 1.75%.

The recent rise in Bitcoin has triggered a general rise in the market, and the cryptocurrency leveraged contract market has also seen a liquidation of more than 100 million US dollars. CoinGlass data shows that the total amount of liquidated positions in the past 24 hours was close to US$200 million, of which long orders (buy up orders) liquidated US$97.84 million, and short orders (buy down orders) liquidated about US$100 million.

Cryptocurrency leveraged contracts market exploded to nearly $200 million in the past 24 hours

Reason for the rise: The German government’s selling pressure was completely absorbed

Why has Bitcoin surged recently? The market seems to have gotten better after the Trump shooting incident, but this may only be one of the reasons for the bullishness. Blockchain data platform Glassnode believes that the reason for Bitcoin’s surge is mainly related to the German government.

Glassnode pointed out that the recent decline of Bitcoin to around $53,000 was largely attributed to the German government’s selling of Bitcoin and the bankrupt exchange Mt. Gox’s expected compensation to creditors in July.

But the good news is that the German government’s recent dump of over 48,00 Bitcoins was completely absorbed by the market in just a few weeks, as Bitcoin did not fall further after falling to the above-mentioned points.

Bitcoin balance changes for German government wallet addresses

U.S. Bitcoin spot ETF has seen multiple consecutive days of net inflows

At the same time, the U.S. Bitcoin spot ETF has seen net inflows for several consecutive days, easing pressure on the Bitcoin market. Bitcoin previously fell below $54,000, which was exactly the average buying cost basis for ETF holders (now up to $58,200) and the 200-day moving average price.

"Crypto City" previously reported that from July 5 to July 12, the cumulative inflow of U.S. Bitcoin spot ETFs exceeded US$1 billion. From the perspective of technical analysis, Bitcoin has returned to above US$60,600, which may be A good sign.

Exchange Bitcoin trading traffic drops

Glassnode also pointed out that Bitcoin transaction flow (note) on major exchanges, usually an important indicator of investor interest and market liquidity, has declined significantly, indicating that selling pressure is declining.

As you can see from the chart below, transaction flow has dropped significantly since Bitcoin reached new highs in March, and is currently holding steady at a daily average of $1.5 billion.

Note: Bitcoin transaction flow is the volume of deposits and withdrawals of Bitcoin from exchanges

Bitcoin transaction inflows and outflows

Analysts are bullish: The third quarter will reach new highs

Cryptocurrency trading firm MNTrading and well-known analyst Michael van de Poppe pointed out that Bitcoin has returned to the key support point above $60,000, and as long as this trend remains unchanged, it is likely to continue to reach new all-time highs in the third quarter.

Another hedge fund trader, Josh Man, had previously made a bolder prediction. He bet that Bitcoin could hit a new high before the end of July because Bitcoin would definitely return to the bull market trend line.

Prominent Analyst Predicts Bitcoin May Hit New Highs in Q3

Unresolved potential selling pressure: Mt.Gox compensation

However, the above-mentioned Mt. Gox incident of compensation to creditors is still a hidden concern in the recent Bitcoin market. Blockchain data platform Arkham noted that Mt. Gox continuously transferred a total of approximately $5.7 billion worth of Bitcoin yesterday afternoon to several unmarked wallets.

Hours later, cryptocurrency exchange Kraken said it had received a Bitcoin and Bitcoin Cash transfer from the Mt. Gox restructuring trustee, but there had been no further transfers of the assets.

The move by the Mt.Gox wallet briefly sent Bitcoin down from $65,000 to $63,000, but fortunately the market quickly resumed its gains.

Mt.Gox resets trustee’s Bitcoin address

This article is reproduced in cooperation with: CryptoCity

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