Where Will Bitcoin Go after Significant Rebound?
Bitcoin is very positive today after an optimistic State of the Union address delivered by President Donald Trump.
Quick overview
- Bitcoin (BTC) surged 5.18% to $66,184 following President Trump's optimistic State of the Union address.
- The cryptocurrency has recovered much of its recent losses, with significant inflows into Bitcoin exchange-traded funds (ETFs) totaling around $257 million.
- Despite the positive momentum, investors are advised to remain cautious due to the recent volatility and selling pressure in the crypto market.
- Other cryptocurrencies like Ethereum (ETH) and XRP also experienced gains, indicating a broader recovery trend in the market.
Bitcoin (BTC) shot up 5.18% on Wednesday after the President delivered a strong State of the Union address, bringing the BTC rate back up to $66,184 (BTC/USD).
Bitcoin just recovered much of the week’s losses and is looking bullish after President Trump gave his State of the Union address and painted a rosy picture of where the economy is. The BTC price increased by more than 5% over the space of 24 hours and has nearly made back all of the losses incurred over the last seven days.
BTC/USDAsset managers reported massive inflows for Bitcoin exchange-traded funds (ETF) after the address with around $257 million recorded. That does not make up for the week’s severe losses caused by outflows of $203 million on Monday, however.
Bitcoin’s Path ahead Indicated by Changing Sentiment
It seems obvious that Bitcoin is on an upward trajectory right now. Wednesday’s gains marked some of the largest the coin has seen in months for a single 24-hour period. Individual ETF funds were reporting inflows of around $83 million for the day, which is a significant improvement from previous weeks.
Bitcoin has managed to recover back above $66K and is poised to climb higher. Because of improved market sentiment, the coin could pick up bullish momentum and make exceptional gains this week. Weekly flows are now considered positive, marking a significant turnaround compared to the last five weeks of $3.8 billion in outflows.
Investors should see Wednesday’s improvement as a tentative return to form for Bitcoin and should be careful about expecting the coin to stay bullish this week. The crypto market experienced severe selling pressure and has been exceptionally volatile in recent months, so a radical change to those trends may be too much to expect. However, it is apparent that Tuesday’s State of the Union address was the powerful motivating factor that the market needed after Bitcoin has spent so much time traveling to an uncertain bottom.
The wider crypto market is in a state of recovery as well, but once again, we urge caution in assuming that these upward trends will last. Ethereum (ETH) gained 7.75% over the last day, and XRP (XRP) jumped 5.67%. Broad bullish trends dominate the market as Wednesday trading began, and we anticipate that some of those prices will settle down before the day is over. Bitcoin should be able to hold onto some of its gains and possibly find support above $66K this week. The fight to reach $70K, on the other hand, is likely to be much harder.
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