Bitcoin's price today surged nearly 3.5% in 24 hours, approaching a record high of 111,970 USD after a prolonged sideways phase. The global cryptocurrency market also surged, adding 150 billion USD to its market cap, reaching 3.37 trillion USD.
MAIN CONTENT
The U.S. – Vietnam trade agreement helps raise positive expectations for cryptocurrency.
The continuous growth of M2 money supply has pushed Bitcoin prices up.
Bitcoin ETFs attract large capital flows, along with a wave of short liquidations from traders.
How does the current U.S. – Vietnam trade agreement affect the cryptocurrency market?
The U.S. – Vietnam trade agreement newly announced by the White House is the main factor stimulating today's price surge, bringing many benefits to U.S. goods.
According to U.S. President Donald Trump, Vietnam will eliminate all tariffs on U.S. goods, while Vietnamese goods will still face high tariffs ranging from 20% to 40%, facilitating the economic development of the United States, thereby indirectly enhancing investor confidence in the cryptocurrency market.
The recently announced trade policy helps reinforce confidence in economic growth, positively impacting global cryptocurrency investment flows.
Donald Trump, President of the United States, 2024
How does the growth of M2 money supply impact Bitcoin?
Data from May 2024 shows that the M2 money supply in the U.S. increased by 4.5%, reaching a record 21.94 trillion USD, marking the 19th consecutive month of increase. This phenomenon often leads to a trend of rising Bitcoin prices in the following months.
The increase in money in the economy drives demand for alternative assets like Bitcoin to preserve value, thus providing upward momentum for this cryptocurrency's price.
How are Bitcoin ETFs attracting large capital flows?
On July 2, 2024, Bitcoin ETF funds recorded capital inflows of about 407.8 million USD, with Fidelity leading with 184 million USD. Ark Investment and Bitwise also received 83 million and 64.9 million USD, respectively.
This large capital flow indicates strong confidence from professional investors in Bitcoin, contributing to the price increase.
How does position liquidation affect price movements?
According to CoinGlass data, about 248.85 million USD in short positions on Bitcoin were liquidated in the past 24 hours, accounting for most of the total 294.5 million USD in liquidations. Long positions also recorded liquidations of 45.8 million USD.
This phenomenon shows the dominance of buying pressure when short-selling investors are forced to close losing positions, contributing to a significant increase in Bitcoin prices.
Large short position liquidations demonstrate the overwhelming strength of buyers, with the market trending towards sustainable growth in the short term.
CoinGlass analysis, 2024
Will altcoins participate in this price surge?
Not only Bitcoin, many altcoins also saw significant price increases. Ethereum recorded an increase of over 5% with a price of about 2,588 USD, while XRP, Solana, and Cardano also increased by nearly 5%.
Notably, memecoins like Dogecoin and Shiba Inu both increased by 5% to 8%, reflecting a broadly positive market sentiment.
What cryptocurrencies have seen significant increases and decreases today?
Top gainers Percentage increase Top losers Percentage decrease Bonk +22.36%, price 0.0000172 USD Four (FORM) -3.3% Dogwifhat (WIF) +18.4%, price 0.94 USD Pudgy Penguins -2.3% Celestia (TIA) +15.75%, price 1.63 USD Bitcoin Cash -0.26%, price 504 USD
Frequently asked questions
How does the U.S. – Vietnam trade agreement affect cryptocurrency? It helps reinforce U.S. economic confidence and attract capital flows into cryptocurrency thanks to clear trade advantages. How does the increase in M2 money supply affect Bitcoin prices? An increase in money supply often leads to a rise in Bitcoin prices due to increased demand for alternative assets as currency circulation increases. What is the current capital flow into Bitcoin ETFs? The capital flow into Bitcoin ETFs remains very large, with Fidelity, Ark Investment, and Bitwise leading and attracting hundreds of millions of USD. How does short liquidation affect the market? Short liquidations create strong buying pressure, helping to push Bitcoin prices up in the short term. Will altcoins keep up with Bitcoin's price increase? Many large altcoins and memecoins all have increases ranging from 5% to 8%, indicating a uniform upward trend in the market.
Source: https://tintucbitcoin.com/nguyen-nhan-thi-truong-tien-dien-tu-tang/
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