Bitcoin surged more than 4% on Friday, from $63,000 to $67,000 in a 24-hour period, recovering some of its heavy losses from the week. The rally in the digital asset market came amid positive signs ahead of Republican presidential candidate Donald Trump’s speech at a BTC conference this week.
Spot Bitcoin ETFs saw net inflows of $31.15 million, with BlackRock’s IBIT fund alone recording $70.74 million inflows. Former President Trump is expected to address a pro-crypto audience at the Bitcoin conference.
Bitcoin’s rally was fueled by positive inflows from ETFs, overcoming the market’s heavy selling pressure and days of heavy outflows from investment funds. Data released on July 25 shows that total net inflows from spot Bitcoin ETFs reached $31.15 million on the day.
The latest 4% surge helped Bitcoin recoup its earlier losses. Data from Coinglass reveals that over $54.42 million in long and short positions on BTC’s price action were liquidated in the last 24 hours, with $32.69 million of the liquidated positions (60%) being short bets. This suggests that traders did not expect this rally, but bulls have come back strongly.
Bitcoin has risen 10% in the last 30 days, showing positive momentum in the industry. Bitcoin is currently trading at an average price of $67,309, while its 24-hour trading volume remains stable at $35 billion.
In addition, Bitcoin and other cryptocurrencies have shown positive reactions to the interest rate cut expectations, with Bitcoin rising 5% to trade above $67,000. Analysts suggest that the Bitcoin market is gaining momentum as trading volumes and trader interest increase.
Former President Donald Trump Set to Keynote Bitcoin Conference
Former US President Donald Trump will deliver a keynote speech at a Bitcoin conference in Nashville, where he aims to cement his candidacy as a “cryptocurrency champion” ahead of the upcoming election. The crypto community is looking to see if Trump will offer clear plans to improve regulation of the industry.
The conference will host prominent figures such as independent presidential candidate Robert F. Kennedy Jr. and former Republican presidential candidate Vivek Ramaswamy. Trump’s 30-minute keynote on the final day of the conference will be an attempt to garner broader support from the crypto community. Trump has reportedly raised over $4 million in crypto donations across multiple tokens, including Bitcoin, Ethereum, XRP, a number of meme coins, and stablecoins pegged to the US dollar.
A total of 19 donors have donated over $2.15 million in BTC to Trump’s campaign. Earlier, billionaire twins Tyler and Cameron Winklevoss donated over $1 million in Bitcoin, with some of their money being refunded after exceeding the $844,600 donation limit.
On the other hand, the US State Department has acknowledged the impact of Bitcoin on tourism in El Salvador. In its latest 2024 Investment Climate Report, the department noted that the adoption of Bitcoin as legal tender in 2021 has helped attract international attention to the country, increasing its popularity as a tourist destination.
The expectation of slowing inflation and a potential interest rate cut by the US Federal Reserve is boosting financial markets, especially the cryptocurrency sector. With Wall Street anticipating further declines in personal consumption expenditure inflation and interest rate cuts, traders and investors are bracing for significant market movements. Stakeholders should keep an eye on upcoming economic indicators and Fed announcements to navigate the markets effectively.
Ethereum ETFs Fail to Boost Ethereum
Ethereum (ETH) has had a less positive week, losing more than 5% against the US dollar, despite the launch of long-awaited ETH exchange-traded funds (ETFs). US regulators have given the green light to the funds, which have been offered by firms such as BlackRock and VanEck. But early indications suggest demand has been mixed.
Ether ETF analysts reported that trading volumes hit $1 billion on the first day of trading (Tuesday, July 23), less than a quarter of the volumes of Bitcoin ETFs when they launched in January. Balchunas noted that the first day’s volumes were “higher than expected,” but the reaction to ETH’s spot price reflects the divided market.
Bitcoin and other cryptocurrencies have already shown positive reactions to the rate cut speculation, with Bitcoin rising 5% to over $67,000. Analysts note that the Bitcoin market is gaining momentum, with an increase in trading volumes indicating growing interest from traders.
In this context, after a decade of waiting, the creditors of the collapsed Bitcoin exchange Mt Gox are finally receiving their dues. It is a long-awaited moment for these creditors who invested nearly $8 billion in Bitcoin, which was locked up in the bankruptcy estate of Mt Gox. However, this occasion has raised concerns that large amounts of Bitcoin could be sold if these creditors decide to convert their cryptocurrencies into cash.
Early indications suggest that these concerns may be unfounded. The two major cryptocurrency exchanges Kraken and Bitstamp, which were tasked with assisting the creditors’ distributions, have confirmed that the payment process is proceeding smoothly. Despite these developments, BTC has continued to gain, rising by 5.3% against the US dollar over the past week.
