Bitcoin Surges Above $63,000 For The First Time In A Week

Confidence UbaniJuly 2, 20241 Mins read29

Bitcoin chart as at March 5, 11:00pm (WAT)

Bitcoin has recently surged past $63,000, marking a 5% increase in 24 hours. This significant rise, which had sparked enthusiasm in the crypto community, followed a week of market volatility. The crypto market experienced fluctuations where Bitcoin reached $64,470 before dropping 7% and rebounding by 3.35% to $61,980 last Sunday.

Between June 28 and July 1, Bitcoin rose by 4.5%, breaking the $63,000 resistance for the first time in a week. The earlier decline was primarily due to concerns over the German government’s BTC transactions with exchanges (internal link) and the potential sale of large amounts of Bitcoin by Mt. Gox creditors. The now-bankrupt Tokyo-based bitcoin exchange Mt. Gox had announced that it would repay nearly $9 billion worth of tokens to thousands of users. This payout news contributed to Bitcoin’s slide to $59,000 last week, the crypto market’s second-worst weekly decline of the year.

However, according to CoinTelegraph (external link), the downward trend was reversed by several factors, including the possible entry of a new major investor.

On July 1, the German government transferred 1,500 BTC, valued at $95 million, to various cryptocurrency exchanges (internal link). Similarly, the U.S. government moved 1,184 BTC from a wallet linked to previously confiscated funds (internal link). These transactions fueled speculation about ongoing selling pressure, with the U.S. government’s wallet holding Bitcoin valued at $13.4 billion. The most significant recent transaction occurred on June 26, when 3,940 BTC, worth $214 million, was sent to a Coinbase Prime account.

Despite these substantial government sales, Bitcoin’s price remained resilient. This resilience was partly due to spot Bitcoin exchange-traded funds (ETFs) absorbing some of the supply, adding a net $137 million from June 25 to June 28. Additionally, instability in traditional markets and the entry of significant new players into the Bitcoin ecosystem bolstered investor confidence.

Billionaire Michael Dell, founder and CEO of Dell Technologies, hinted at a possible Bitcoin investment on June 21, which also sparked excitement. Dell posted a meme featuring the Cookie Monster holding Bitcoin-shaped cookies. This raised speculation about his company’s involvement or possible investment in the crypto market.

In another development, Amber Japan, a Tokyo-based subsidiary of Sony, rebranded as S.BLOX to focus on cryptocurrency trading. These recent developments have contributed to the uptrend that crypto enthusiasts predict will continue.