The heavy selling of holdings by the German Government has been responsible for much of Bitcoin’s recent rollercoaster ride. For July, following a highly public sale of 3846.05 BTC that took place on July 13, the Government appears to have been regularly divesting its Bitcoin possessions since June. This selling continued to push Bitcoin lower, casting more fear, uncertainty, and doubt among investors. This decline has recently hit the brake, but Bitcoin rose high. Bitcoin is trading at $62,762.53 after breaking the key resistance of $61K.
The surge provided reassurance for the market that Bitcoin was not only able to recover from this selloff but also had more room left to grow. As for Bitcoin’s price prospects, analysts remain optimistic that the rally may continue and reach a new historic level – especially with the US elections in November.
Market bounces back and a look forward
Although the German government has received a small Bitcoin donation of $171.92, it seems that the heavy German Government liquidations have ended, relieving the market. Bitcoin continued on its path up as the sell-offs petered out. It has rebounded over the critical $61,000 level, strengthening investor confidence and laying another path to an upcoming bull run. Meanwhile, market experts say Bitcoin’s latest performance could signify an ongoing rally spurred by monetary force and extra-political incentives.
Political turbulence and the effect on crypto
The crypto market has mainly been shaped by the recently foiled assassination of the former US president and now candidate, Donald Trump. Bitcoin rose by +4%, as predicted in our last article. However, major crypto assets such as Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) also performed strongly. The crypto market cap added more than 2% in the last 24 hours. In the wake of this event, Trump has almost become known as ‘the pro-crypto’ candidate…as if his election chances in November were not already a surefire thing.
Trump’s re-emergence has not gone unnoticed in the cryptocurrency market, as over this period, Bitcoin pushed through $61k and is now just above that trading line at $62,000. Since then, there have been sharper swings, but if anything, his odds of winning the election increased rather than decreased after Tuesday’s ‘TrumpIsBetter’ rally. This move has strengthened the market sentiment that he is a healthier and more lucid candidate than Biden.
The reaction across the crypto market to political events communicates a global financial link, one that cryptocurrencies have begun reimagining. However, as Trump has increased his chances of winning the election, so has market confidence in general.
According to Polymarket projections, the odds of a Trump victory have gone from 60% before the shooting to his best position during the entire campaign, up by 70%, a solid 10% increase in voter confidence in him. The move in the political world has only kicked sentiment for cryptos into a higher gear, and there is a mounting supportive structure helping to keep bulls alive.
Bitcoin’s rally above $61 and rise to its price of about $62k has finally broken the downward trend. This is a significant gain, given how close it was to historic lows this week. Given the political ambiance and rising investor confidence in America, Bitcoin price predictions suggest it may be set to hit new all-time highs.
