According to Cointelegraph: Bitcoin price surged close to the $70,000 mark on July 29, achieving a seven-week high and nearing its all-time high by approximately 6%.
Bitcoin Price Action
Bitcoin (BTC) prices touched $69,775 during Asia trading hours on July 29, as per TradingView data. This marks the closest the cryptocurrency has been to its all-time high of $73,757, which was set on March 14, now just 5.7% away.
This is the highest level Bitcoin has reached since June 13, when it hit $70,000 before encountering resistance and pulling back.
Market Analysis and Sentiment
The recent bullish momentum is attributed to positive sentiment driven by significant events and influential figures in the cryptocurrency space. The "Titan of Crypto," a notable analyst, shared with his 86,000 followers on X (formerly Twitter) that Bitcoin hitting $110,000 is "programmed" as it breaks out from a "cup and handle" chart pattern.
The sentiment has been further bolstered by statements from U.S. presidential candidates and a prominent Republican senator at the Bitcoin 2024 conference in Nashville, Tennessee, from July 25-27. Independent presidential candidate Robert F. Kennedy Jr., Senator Cynthia Lummis, and former President Donald Trump all made remarks supportive of Bitcoin. They discussed the potential for establishing a strategic Bitcoin reserve for the U.S., with Trump promising that the government wouldn’t sell any more Bitcoin if he were elected. Such moves could apply buying pressure and potentially lead to a supply shock in BTC markets.
Economic Indicators and Federal Reserve Expectations
Adding to the positive sentiment, the Personal Consumption Expenditures (PCE) index rose only 0.1% in June, suggesting that inflation is coming under control. This has increased confidence in an interest rate cut by the Federal Reserve in September.
A Federal Reserve meeting is scheduled for July 31, where another rate decision is expected. The market anticipates that the Fed will keep rates unchanged. CME Group data shows a 95.9% probability that rates will remain at 5.25% to 5.5%.
Moreover, signals for a rate cut in September are strengthening, with the odds at 85.8% for a reduction to 5.0% to 5.25%, which would be the first cut since March 2020.
As Bitcoin inches closer to its all-time high, the convergence of positive sentiment, supportive political figures, and favorable economic indicators are driving optimism in the market. With a potential rate cut on the horizon, the outlook for Bitcoin continues to strengthen, leaving traders and investors eager to see if BTC will break its previous records.
