After falling to $53,600 last Friday, Bitcoin price made a big recovery this weekend, crossing the $63,000 threshold today. This represents a huge increase of 17% since last Friday, reaching this level for the first time in two weeks. The rally can be attributed to several factors that collectively pushed up the price of the Prime Minister’s cryptocurrency.
#1 The “Trump Bitcoin Pump”
The Bitcoin price revival coincided with the attempted assassination of former president and 2024 presidential hopeful Donald Trump. The incident significantly affected his chances in the upcoming election, with betting market Polymarket now at a 70% probability predicts his victory.
Crypto expert Will Clemente III pointed out on X: “Trump’s chances of winning in November are skyrocketing in the prediction markets.” He continues noted“Based on Bitcoin’s reaction so far, it appears the markets are starting to price in a complete Trump victory.”
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Alex Krüger, a macro analyst, elaborated on the implications of a possible Trump presidency for the financial markets: “The Trump Trade is now underway. This implies Trump’s victory, or the expectation that he will win: Bullish for Crypto as the Trump administration could pursue supportive regulations for cryptocurrencies, driving innovation and adoption.
#2 German sales exhausted
The recent completion of a large-scale sell-off of Bitcoin by the German government has also contributed to the price recovery. Germany has exhausted its cache of 50,000 BTC seized from Movie2k, completing the last transaction of 3,846.05 BTC last Friday.
James “Checkmate” Check, a leading supply chain analyst, noticed on the incredible strength of the BTC price at It fell by ~25%, in a very structured and orderly correction. The last time something like this happened, LUNA sold ~80k $BTC and the price dropped from $46k to $25k, and shortly after to $17k. Not the same.”
#3 DXY shows weakness
The weakening US dollar is likely another driving force behind BTC’s recent gains. The US Dollar Index (DXY), which measures the greenback against a basket of major currencies, fell 1.8% over the past two weeks to a five-week low of 104.
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Expectations of a rate cut and the growing US government deficit, which has reached $1.27 trillion so far in June, have contributed to the dollar’s decline, pushing investors towards riskier assets such as Bitcoin and cryptocurrencies.
#4 Bitcoin Miner Capitulation Ends
Joe Burnett, another well-known crypto analyst, marked via Historically, the end of miners’ capitulation has been associated with subsequent price increases.
#5 Technical breakthrough
From a technical perspective, Bitcoin surpassed the critical 200-day exponential moving average (EMA) and a descending trendline last Saturday. This milestone can be viewed as a bullish signal among traders, indicating a possible end to the downturn that began in early June.
At the time of writing, BTC was trading at $63,105.
Featured image created with DALL·E, chart from TradingView.com
