Bitrabo Editorial
Despite some recent bearish sentiment, Bitcoin remains steady at current levels and is attempting to break free from recent downtrends. Analyzing the daily chart shows signs of weakness, yet a potential shift may occur if bulls manage to push back, avoiding further declines and reclaiming levels around $70,000 and potentially $72,000.
Potential Trump Effect: 3% Increase in New BTC Investors as Prices Jump from $57,000 to $69,000
While monitoring the price movements, there are interesting developments suggesting a possible upward trend. Referencing on-chain data, an analyst observed a rise in new investors when prices surged from $57,000 to $69,000.
During this period, there was a 3% increase in new investors, a significant uptick compared to the mere 4% increase seen post-FTX crash. The willingness of new investors to enter the market at this pace indicates optimism regarding future prospects.
The surge in Bitcoin prices aligning with the recent increase, from $57,000 to $69,000, coincides with significant events in the United States. A failed assassination attempt on July 14 against Donald Trump, the potential candidate against Joe Biden, boosted the likelihood of Trump reclaiming the presidency.
Trump’s recent appearance at the Bitcoin Conference in Nashville further reinforced his support for the leading cryptocurrency. He expressed intentions to replace the current SEC chair, Gary Gensler, with someone supportive of a crypto-oriented future. This shift in Trump’s stance towards crypto could be a factor driving more users to enter the market.
Trump also mentioned considering Bitcoin as a strategic reserve, echoing Senator Cynthia Lummis’ proposal of a bill for the Treasury to purchase 200,000 BTC annually for five years. These endorsements from the former president may be contributing to the growing influx of new users seeking exposure to the cryptocurrency.
Bitcoin: Dominated by Whales?
Aside from the Trump endorsement attracting new users, on-chain data indicates consistently high average monthly transfer volumes. Analysts noted that the average monthly transfer volume has ranged between 700,000 and 1 million BTC over the last 18 months as of July 31.
While this data suggests the presence of whales influencing market dynamics, the average transfer volume has been gradually decreasing since mid-2022. It peaked at 6 million BTC during the Luna Crash before stabilizing, indicating potential changes in the behavior of larger stakeholders in the Bitcoin market.