The price of Bitcoin popped past $67,000 Friday, rising 5.7% to its highest price in over a month.
At the same time, gains were widespread among other leading cryptocurrencies too, including Ethereum and Solana, which rose 3.9% and 9.2%, respectively, to $3,500 and $170. Spot Ethereum ETFs are expected to begin trading next week.
Meanwhile, the crypto market saw an uptick in liquidations, especially among traders expecting prices would fall. With $54.1 million in long positions liquidated, a majority of rekt trades over the past day were positioned toward the downside at $95 million, according to CoinGlass data.
The cause of Friday’s rally wasn’t immediately clear. But Greg Magadini, director of derivatives at crypto analytics firm Amberata, told Decrypt that the price action is likely a result of several culminating factors, such as rate cut expectations and dissipating market fears.
“The big drivers of lower prices recently have been Germany’s Bitcoin liquidations and Mt. Gox FUD,” he said, referring to the investor acronym for fear, doubt, and uncertainty. “That’s looking to be resolved very soon.”
The supply overhang from Germany’s selling of seized Bitcoin appeared to cease last week as the country’s digital coffers ran dry. On top of that, Mt. Gox creditors are expected to finally receive repayments from the failed Bitcoin exchange within the next seven to 14 days.
A key reason that crypto could also be rising is certainty forming around rate cuts from the Federal Reserve, Magadini said. Pointing at a 98% chance penciled in by CME traders, Magadini added that it’s “basically guaranteed” the U.S. central bank cuts rates in September.
The uptick in Bitcoin’s price comes after a punishing stretch. Earlier this month, it dipped as low as $54,000. While Bitcoin’s price has only risen 3% on a monthly basis, it means the largest cryptocurrency by market capitalization has swelled over 18% in the past two weeks.
The vibes on Wall Street were comparatively dour as the tech-heavy Nasdaq Composite and S&P 500 tumbled 0.6% each. The Dow Jones Industrial Average meanwhile fell 1%.
Finally, Bitcoin’s price could be rising as investors brace for a high-profile week, Magadini said, He described former president Donald Trump’s slated appearance at a Bitcoin conference in Nashville next week as an especially bullish factor.
“That’s likely going to be very positive,” he said of Trump bringing eyeballs to the asset. “Altogether, I expect all-time highs [for Bitcoin] going into the presidential election.”
Edited by Ryan Ozawa.
