- Bitcoin surged above $60,000, recovering from losses following an attempted assassination on former President Donald Trump.
- The cryptocurrency market saw overall gains, with Ethereum also rising and Bitcoin’s exchange activity indicating reduced selling pressure.
Bitcoin has made a significant comeback, climbing above the $60,000 mark on Tuesday, recovering from the previous day’s losses. This resurgence comes in the wake of an attempted assassination on former US President and Republican nominee, Donald Trump.
Market Rebound After Political Shock
On Tuesday, Bitcoin, the world’s largest cryptocurrency, was trading just above $60,800 at 1:05 p.m. EDT (1705GMT), marking a daily increase of 5.4%. The upward trend follows a turbulent Monday, which saw a drop in prices amid political unrest. The attempted assassination on Trump occurred Sunday near the Trump International Golf Club in West Palm Beach. The FBI described it as an “attempted assassination,” though Trump had previously been injured during a similar attempt at a campaign rally in July.
Ethereum and Broader Market Gains
Ethereum, the leading altcoin, also saw a positive movement, trading at $2,370 with a daily gain of over 3.7%. The entire cryptocurrency market experienced a 4% daily increase, reaching a total value of $2.1 trillion. Bitcoin’s dominance in the market was 57.3%, while Ethereum’s share stood at 13.6%, according to CoinMarketCap.
Historical Peaks and Recent Slumps
Bitcoin had previously soared to a record high of $69,992 on July 29, shortly after Trump unveiled his vision to make the US the “crypto capital of the planet and the Bitcoin superpower of the world.” However, starting August 1, cryptocurrencies faced a steep decline triggered by global recession fears, causing a market-wide freefall.
Exchange Activity and Investor Behavior
CryptoQuant, an on-chain and market data analytics firm, reported that Bitcoin exchange depositing addresses have hit their lowest level since 2016. This indicates a decrease in the number of investors selling coins on spot exchanges, which could imply reduced selling pressure. According to CryptoQuant, this metric reflects the number of addresses sending inflow transactions to exchanges.
In a separate note, CryptoQuant mentioned that new whales and Binance traders are actively purchasing Bitcoin, while long-term holders continue to retain their positions. This mix of new investments and enduring holdings might signal market stability and potential price growth.
The Role of Whales
Whales, defined as individuals or financial entities with substantial capital capable of influencing market prices and trends, play a critical role in the current dynamics. The sustained buying by new whales, alongside the holding pattern of old whales, suggests a promising outlook for Bitcoin’s future price trajectory.
Bitcoin’s resurgence above $60,000 highlights the cryptocurrency market’s resilience amid political and economic uncertainties. As new and old investors continue to shape the market, Bitcoin’s path forward remains one to watch closely.