Bitcoin Bulls Target $70K After Reaching $66K: First Mover Americas

Bitcoin traders are closely watching a short-term price target of $70,000 as BTC briefly surged above $66,000 during the Asian trading session. Subsequently, Bitcoin pulled back to $65,000 in European trading, still reflecting a 2.2% increase over the past 24 hours. The market sentiment appears more positive in the short term, with Lucy Hu, a senior analyst at Metalpha, noting that the rebound in Bitcoin price indicates a more optimistic outlook in the macro environment. The market seems encouraged by the potential for a more crypto-friendly administration and policies under Donald Trump’s vice president pick. Additionally, the initiation of Mt. Gox repayments to creditors may be alleviating long-term selling pressure, contributing to the current bullish sentiment.

Bitcoin exchange-traded funds (ETFs) have continued their winning streak, with Tuesday recording $422.5 million in inflows, the highest single-day total since June 5. BlackRock’s IBIT saw the largest share of inflows, accumulating over $260 million. In the last three days alone, ETFs collectively attracted over $1 billion, reflecting growing confidence in Bitcoin’s price trajectory. The ETFs’ seven-day inflow streak aligns with Bitcoin’s approximately 20% surge. Factors such as improved prospects for Donald Trump’s presidency and the resolution of supply concerns from sales by German state Saxony are contributing to the positive market outlook, with the crypto market catching up to the sustained rally in technology stocks on Wall Street.

XRP has seen a notable surge of over 12% in the past 24 hours, outperforming other major cryptocurrencies. The broader crypto market, as measured by the CoinDesk 20 Index, has risen by around 4.2%. XRP’s seven-day gains have reached approximately 40%, marking a significant turnaround from its previous underperformance compared to other digital assets. Alex Kuptsikevich, FxPro senior market analyst, attributes this surge to a shift in sentiment within the crypto market, particularly in XRP. The recent introduction of indices and reference rates for XRP by CME and CF Benchmarks has further fueled positive market sentiment, with a triangle pattern forming on long-term price charts, suggesting potential bullish movements in the near future.

The chart of the day illustrates the daily movements in the ratio between ether and Bitcoin’s dollar-denominated prices since October 2023. The ratio is currently experiencing a volatility squeeze, characterized by a triangular consolidation pattern ahead of the anticipated debut of a spot ether ETF in the U.S. next week. A potential breakout from this pattern could signal a period of ether outperformance in the short term. The chart source is TradingView.

In conclusion, the crypto market is witnessing dynamic movements and evolving sentiment driven by various factors such as price targets, ETF inflows, and individual cryptocurrency performances. These developments underscore the growing interest and confidence in the crypto space, with traders closely monitoring market trends and potential opportunities for investment and growth.