Bitcoin‘s recent surge of 20% over the past three weeks has reignited bullish enthusiasm among traders, according to data from Santiment. This resurgence marks the most optimistic sentiment towards Bitcoin since March 2023, with discussions on social media reflecting a notably favorable outlook not seen in the last 16 months.
Santiment’s weighted sentiment index, which measures the ratio of positive to negative comments on X, has reached a 16-month peak. Bitcoin’s price has recently surpassed $67,000, showing a 6.22% increase since July 25, as reported by crypto.news. On July 28, Bitcoin briefly touched $69,404, its highest value since June 12, though it currently trades around $67,770.
This upward momentum follows unexpectedly mild inflation data, hinting at potential multiple interest rate cuts by the U.S. Federal Reserve this year. Since hitting a local low of $53,550 on July 5, Bitcoin has climbed over 23%, driven by significant dip-buying from Bitcoin ETF investors. These ETFs have continued to attract substantial investments, with recent inflows totaling $534 million. Notably, BlackRock’s Bitcoin ETF is nearing $20 billion in assets under management.
In addition, U.S. Senator Cynthia Lummis has introduced a comprehensive plan for a national strategic Bitcoin reserve. Announced on July 27 at the Bitcoin 2024 conference in Nashville, this proposal followed President Donald Trump’s keynote speech at the event, where he expressed strong support for the crypto sector and endorsed the Bitcoin reserve initiative. The combination of Trump’s endorsement and Lummis’ legislative efforts has further bolstered the market’s positive sentiment.
Further fueling the optimism, reports emerged yesterday that Vice President Kamala Harris’ campaign team has engaged with leading U.S. crypto companies to “reset relations,” potentially signaling a more favorable regulatory environment.
The convergence of Bitcoin’s price rally, strategic legislative proposals, and prominent endorsements underscores a burgeoning bullish phase for the cryptocurrency market, suggesting potential for significant developments in the near future.
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