What are the reasons for the rise in Bitcoin and altcoin prices today?
As the US-China trade negotiations unfold, Bitcoin and altcoins have seen a sharp rise this week. As of now, Bitcoin has broken through $109,477, up 3.7% in 24 hours, a new high since May 29. Ethereum has also risen to $2,668, up 7.3% in 24 hours. This round of gains has pushed the total market value of cryptocurrencies to more than $3.54 trillion.
The catalyst for this rise is the easing of the situation in the US-China trade negotiations, which started in London on Monday and are expected to end on Tuesday (local time). At present, the market generally expects the two sides to reach an agreement to relax export controls and possibly reduce tariffs. Such an outcome may ease investors' concerns that have lasted for months due to escalating trade restrictions.
Meanwhile, Strategy bought 1,045 bitcoins worth $110 million last week, bringing its total holdings to 582,000 bitcoins worth more than $63 billion. And corporate adoption of Bitcoin is rising, such as Trump Media, MetaPlanet and GameStop, which are also continuing to buy Bitcoin.
According to Santiment data, this wave of hoarding has also caused the number of bitcoins held by exchanges to drop from 1.57 million on January 1 to 1.18 million. This downward trend is generally seen as a bullish signal, indicating that investors are transferring assets to self-custodial institutions for long-term holding.
In addition, market sentiment is also optimistic after some financial giants made optimistic remarks. Cathie Wood of Ark Invest believes that the price of Bitcoin may rise 15 times in the next 5 years. Tom Lee of FundStrat also believes that the price of Bitcoin is expected to rise to $250,000 by the end of this year.
In addition, with the activation of the Bitcoin cup handle pattern, it is expected to drive continued growth. As shown in the figure below, Bitcoin has broken through the upper track of the downward channel, so analysts maintain bullish expectations and believe that BTC is expected to soar to $142,000 in this cycle.
In summary, from the progress of Sino-US trade negotiations, to the adoption of Bitcoin by enterprises, to the decline in the balance of Bitcoin on exchanges, multiple factors are driving the market up. At the same time, the optimistic forecasts of financial giants and the technical bullishness of analysts have injected strong momentum and optimistic expectations into the market.