Bitcoin (BTC) traders are anticipating a potential surge in prices, with some expecting figures as high as $70,000 in the near term. The sentiment surrounding the broader crypto sector is gaining momentum, particularly as the U.S. elections approach and selling pressure from key wallets diminishes.
Lucy Hu, a senior analyst at Metalpha, highlighted the positive outlook in the market, attributing it to recent developments. “The rebound in Bitcoin price indicates a more optimistic view of the near-term macro environment,” Hu stated. “Market participants are encouraged by the crypto-friendly stance of Trump’s vice president pick and the potential implications for future policies.”
Technical indicators, such as the 120-day moving average, suggest a bullish trend for BTC. Hu mentioned that Bitcoin could consolidate around this moving average and potentially reach levels of $68,000 to $70,000. However, she emphasized the importance of monitoring Federal Reserve policies and the impact of Mt. Gox proceedings on the market.
Bitcoin has experienced volatile price action recently, with fluctuations leading to lows of $53,500 in early July. The commencement of bitcoin repayments by wallets associated with the defunct exchange Mt. Gox initially fueled bearish sentiments. Nonetheless, recent positive developments have reignited bullish expectations.
Notably, wallets linked to the German state of Saxony have emptied their bitcoin holdings, signaling renewed confidence. Furthermore, the pro-crypto stance of Republican candidate Donald Trump, who selected Ohio senator JD Vance as his 2024 running mate, has bolstered optimism in the market. Vance himself held a significant amount of BTC in 2022.
Nick Ruck, head of growth at BitU Protocol, pointed out the shifting perspective on the digital assets industry in the U.S. “Expectations of more favorable policies toward Bitcoin and crypto are on the rise as the elections draw near,” Ruck stated. He also highlighted the diminishing sell pressure in the long term as Mt. Gox distributes funds to creditors.
According to data from the betting application Polymarket, the odds of Trump winning the 2024 elections have increased from 60% to 69% in the past week. This political landscape, combined with the evolving market dynamics, is shaping the outlook for Bitcoin prices and market sentiment in the coming months.