After the next Bitcoin shock, is it ready to sprint to the 70,000 mark?
The price of Bitcoin has broken through the key resistance level of $65,000, and the market has paid close attention to it. However, whether there are enough bullish catalysts to sustain this rally still needs further analysis.
First, from a macroeconomic perspective, expectations of lower interest rates in the United States and renewed interest from long-term institutional investors are important drivers of Bitcoin's rise. In particular, concerns about a stock market bubble have eased as signs of global economic recovery strengthen and U.S. housing prices hit record highs. The strength of the U.S. stock market is particularly reflected in the technology industry, with several technology giants such as Alibaba, Tesla and Apple achieving gains of more than 30%. The strong performance of technology stocks also provides indirect support for Bitcoin as investor sentiment gradually improves under loose monetary policy.
Secondly, changes in money supply (M2) are closely related to Bitcoin prices. Historical data shows that when liquidity increases, the probability of Bitcoin rising reaches 83%. Compared with gold, Bitcoin is more sensitive to M2, which means that Bitcoin has greater potential for growth in the context of global monetary easing. In particular, the stimulus measures that governments may re-introduce have further strengthened Bitcoin's position as an asset to hedge inflation and currency depreciation.
In addition, the recent inflow of funds into spot Bitcoin ETFs has reached US$242 million, indicating that demand from institutional investors is rising rapidly. Previously, the market was skeptical about the entry of institutional funds, but with the approval of ETFs from large institutions such as BlackRock and the increase in fund inflows, market sentiment has changed significantly, and investors' risk appetite has also increased.
Overall, factors driving Bitcoin's rise include a positive macroeconomic situation, strong performance in the technology industry, increased money supply, and institutional fund inflows. These factors interact to lay the foundation for Bitcoin to move towards US$70,000. Although Bitcoin may face some volatility in the short term, the upward momentum seems to be relatively solid in the current market environment.
