Bitcoin Back to Bull Market? $70,000 Target Within Reach!

Bitcoin Back to Bull Market? $70,000 Target Within Reach!After two months of intense fluctuations, Bitcoin price has witnessed a strong rebound this month, breaking through the $65,000 mark. This represents a surge of over 30% from the recent low of $49,000

Bitcoin Back to Bull Market? $70,000 Target Within Reach!

After two months of intense fluctuations, Bitcoin price has witnessed a strong rebound this month, breaking through the $65,000 mark. This represents a surge of over 30% from the recent low of $49,000. This rally is closely linked to the Federal Reserve's rate cuts and China's large-scale monetary easing measures, leading to widespread market sentiment that Bitcoin prices are poised to continue climbing.

Burak Kesmeci, an analyst at Cryptoquant, points out that Bitcoin's rally is likely to be long-term. The current market price surpasses the average realized value for the past year, indicating a growing confidence among long-term Bitcoin investors. The exchange supply ratio and capital flow ratio of Bitcoin also exhibit positive signals, suggesting that investors are more willing to buy Bitcoin in anticipation of higher returns in the future. This has led analysts to once again target $70,000.

In its latest report, 10X Research predicts that Bitcoin has reversed its downward trend and is now aiming for $70,000. The team believes that Bitcoin has the potential to break through this price level within two weeks and reach a new all-time high by the end of October. In March of this year, Bitcoin reached a historical high of $73,096 due to favorable factors like the Bitcoin halving event, support from US presidential candidate Trump, and the launch of Bitcoin ETFs. This high point could potentially be surpassed again within the Federal Reserve's rate cut cycle.

10X specifically emphasizes the stimulating effect of China's stimulus measures announced this week on the market. China's large-scale easing has led to increased global liquidity, which could trigger a parabolic rise in cryptocurrency prices. This week, demand for US spot Bitcoin ETFs has also rebounded, attracting over $1 billion in investment inflows. Since its launch in January, Bitcoin ETFs have accumulated a net inflow of $18.8 billion.

Statistics show that institutions issuing Bitcoin ETFs have been aggressively buying up Bitcoin spot in the past week. On Friday alone, the three Bitcoin funds of BlackRock, Fidelity, and Ark acquired 6,661 Bitcoins, contributing to Bitcoin's scarcity. This has further fueled investor expectations of Bitcoin entering a bull market in the fourth quarter.

Bitcoin's strong rebound is not only attributed to the favorable impact of the Federal Reserve's rate cuts and China's easing monetary policy, but also reflects investors' optimistic outlook on the future of the cryptocurrency market. The rapid development of Bitcoin ETFs and the active participation of institutional investors have infused new vitality into the Bitcoin market, laying the foundation for further price increases. While some uncertainty remains in the market, Bitcoin still holds immense potential for growth in the current macroeconomic environment.