The price of Bitcoin rose to 65,000 dollars: analysts explain the rally

Bitcoin (BTC) prices neared $65,000 during early trading hours on Tuesday. This significant increase indicates a significant change in market sentiment.

For example, last week, the index of fear and greed was at a terrible 27. Now, it's increased to 65 Greed.

Why has the price of Bitcoin bounced back?

Recent fluctuations coincide with systematic market movements. For example, today, Japanese company Metaplanet announced the purchase of 21.877 BTC worth approximately $1.2 million.

This purchase brings Metaplanet's total bitcoin holdings to 225.611 BTC, worth around $14.17 million. In addition, Metaplanet recently issued a $6.2 million bond to expand its Bitcoin reserves. The bond, with an annual interest rate of 0.5%, matures on June 25, 2025.

Read more: Who will have the most Bitcoins in 2024?

10X Market analysts have pointed to several reasons for Bitcoin's price movement. You will notice that the price of Bitcoin can change rapidly based on new information.

Bitcoin is up 10% since last Friday, moving from a sold-out rally to a clear downtrend. After the price crossed the key level of $61,133, the sentiment changed from bearish to bullish.

Key factors contributing to Bitcoin's strong performance include high market liquidity. After four weeks of net inflows totaling $8 billion, the market received $3.3 billion in inflows last week, mainly from futures, stolkcoins and bitcoin spot ETFs. In particular, Tether's withdrawal of $1 billion USD shows a positive trend.

In addition, Bitcoin Spot ETFs such as BlackRock's iShares Bitcoin Trust and Ark 21 Shares Bitcoin ETFs experienced significant gains, each earning more than $117 million on Monday. This indicates stronger retail demand than ever before.

Foreign support and speculative activities boosted the market. BlackRock CEO Larry Fink recently expressed his bullish outlook on Bitcoin, boosting investor confidence significantly. Additionally, if approved on July 23, the possibility of an Ethereum ETF launch will add to the positive sentiment.

Rumors of a softer regulatory regime in China and the delay of South Korea's crypto tax, now pushed to 2028, are further fueling the market. Both developments are likely to further boost business activities.

Political developments, especially Donald Trump's increasing chances of winning the election following an assassination attempt, have also affected market sentiment.

Avinash Shekhar, co-founder of crypto derivatives trading platform Pi42 echoes the 10X market analysis.

“Bitcoin price rose above $63,000 for the first time in over two weeks, driven by recent market developments. Altcoins followed BTC's upward trend, restoring the total crypto market cap to $2.4 trillion. The weekend saw further gains, possibly influenced by the failed assassination attempt on pro-crypto US presidential candidate Donald Trump,” Shekhar told BinCrypto.

Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030

Amidst these developments, some believe Bitcoin's value has fallen. However, after reaching $65,000 earlier today, Bitcoin is trading around $63,000 as of this writing.

“Bitcoin ends the correction at -25.6%, the deepest correction in the cycle and the third longest in 42 days,” said Rekt Capital.