Market data, a key indicator of Bitcoin’s (BTC) bullish momentum, suggests that Bitcoin is on a positive trajectory. Recent news surrounding Bitcoin strongly supports a potential new all-time high (ATH). With increasing institutional interest and the halving event approaching in 2024, the market sentiment is becoming increasingly optimistic.
Tether Market Cap Growth Turns Positive
Tether’s (USDT) market cap stagnated and declined in June and early July. However, this trend has reversed in the past week, with Tether’s market cap reaching a new high of nearly $114 billion. After several months of decline, this marks the first positive growth in Tether’s market cap. This increase in USDT supply typically indicates that traders are preparing to buy more crypto assets, driving up demand and prices.
Experts note that Tether’s USDT printing is a reliable sign of new money flowing into the market. The data indicates a strong correlation between Bitcoin prices and USDT market cap growth. When USDT grows positively and significantly, Bitcoin’s price rises and vice versa. With USDT’s market cap growth turning positive in July, investors have a solid basis to expect a new ATH for Bitcoin.
If there were no demand to print more USDT to buy Bitcoin, Tether wouldn’t have printed billions of dollars worth of USDT in just one week.
Rapid Increase in New Bitcoin Whales
A 16% drop in early July seemed alarming for new Bitcoin whale investors. However, this drop didn’t deter them; new whale wallets continued growing. Never in history have Bitcoin whale wallets increased as rapidly as they do now. The accumulation by whales, often seen as smart money, is a bullish indicator that suggests confidence in Bitcoin’s long-term value.
Ki Young Ju, CEO of CryptoQuant, noted that in 2021, around 70,000 BTC flowed into wallets with 1,000 BTC or more balances. Currently, approximately 100,000 BTC flow into these wallets each week. This upward trend has become almost “vertical” in July 2024.
Ki also mentioned that most of these whale wallets are new, emerging post-ETF, as the older generation of whales has stopped growing in 2024. Regardless of whether they are new or old, this substantial accumulation adds momentum for Bitcoin to reach a new ATH.
Stable Inflows from U.S. Bitcoin ETFs
July has been a historic month for Bitcoin as governments started selling off their Bitcoin holdings. In the first week, the U.S. government sold 3,940 BTC, worth $240 million, seized from a drug dealer in 2014. Subsequently, the Berlin government sold its remaining 45,000 BTC holdings. Despite these sales, Bitcoin’s price has shown resilience, suggesting solid demand.
These sales contributed to a market downturn, negatively impacting Bitcoin’s price. However, this was seen as a test of investor resilience, as the 50,000 BTC sold by governments is negligible compared to the current supply of 19,727,506 BTC.
In contrast, U.S. Bitcoin ETF inflows have been positive for ten consecutive days since July 5, with some days exceeding $420 million. This accumulation by ETFs suggests they view BTC’s price dip as an opportunity rather than a risk. Institutional investors increasingly see Bitcoin as a hedge against inflation and a store of value, further supported by the consistent inflows into ETFs.
Related news: Spot Bitcoin ETFs Inflows Surge, Yet BTC Struggles to Break Above $65K
Support for Bitcoin from U.S. Presidential Candidates
U.S. presidential candidate Donald Trump has made increasingly pro-Bitcoin statements despite previous skepticism during his presidency. Trump and the Republican Party are backing Bitcoin and the mining industry with solid promises. This political support could lead to more favorable regulations and greater mainstream acceptance of cryptocurrencies.
Trump has pledged to remove hostility toward crypto in the U.S., aiming to protect and retain crypto companies. He has also promised to revitalize NFTs, and although his campaign does not currently accept crypto donations, he welcomes supporters to contribute using Bitcoin and other tokens. This has created a positive sentiment among Bitcoin investors.
Trump explained his change of stance on Bitcoin to Bloomberg, stating, “If we don’t do it, China will.” This highlights the geopolitical aspect of cryptocurrency adoption and the race for technological supremacy.
If Trump is re-elected, it could open a new chapter for the crypto market. However, it’s too early to conclude. According to OpenSecrets, a quarter of Trump’s campaign donations come from the securities and investment sector. Moreover, with current President Biden contracting COVID-19 and increased support for Trump following an assassination attempt, investor expectations for Bitcoin’s future in the U.S. are becoming more optimistic.
Related news: Crypto Market Reaction to Failed Assassination Attempt on Trump
