Top 3 Reasons Why Bitcoin Could Return to $70,000 This Week
At the time of writing, Bitcoin (BTC) is showing a slight recovery, rising 0.54% in 24 hours to reach $66,506.
However, such a rise is only an initial signal of the beginning of a rally, so this trend may still be only a recovery.
Rising costs for the leading cryptocurrency have 3 main reasons for the upward price movement.
The first of these three factors is retail transactions and whales, the second is social sentiment, and the last is the impact of spot Bitcoin ETF products.
The size of retail and wholesale transactions is a vital indicator of whether in the ecosystem of Bitcoin funds are infused or not. The current trading volume is noteworthy, although it is not as high as it was during the boom ($12,487,097,412 vs. $24,103,230,258). In the near term, volatility will decrease as whales begin to take control of trades.
Bitcoin spot exchange traded funds have a huge impact on the market. BTC is very sensitive for Wall Street traders. They are affected not only by the markets, but also by the change in the way investors perceive cryptocurrency. caused by even minor "rumours” or statements.
The negative flow of ETF products over the past 3 days was partly caused by capital outflows from Grayscale Investment's GBTC. If this trend reverses in the coming week, it could have a significant impact on the price of Bitcoin and bring it to the desired level.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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