Bitcoin – The bull run takes over

Thu Jul 18, 2024 ▪ 4 min read ▪ by Nicolas T.

The second quarter wasn’t great for bitcoin, but the outlook is brightening. $100,000 is still in sight by the end of the year.

FUD fades

Bitcoin The US dollar fell 25% from $71,000 to $53,000. In percentage terms, this is the largest decline since February.

After rising 69% in the first quarter, bitcoin fell 13% in the second. Despite this correction, it remains the leader of all asset classes since the beginning of the year (+55%).

The fourth halving was the highlight of the quarter, and its impact on the market was positive. The impact was obviously not immediate. However, in the long run, its impact is equivalent to buying 450 BTC per day that will never be sold.

Like us written recentlyBitcoin sales linked to the German government as well as Mt. Gox have prompted traders to cover. The change in market sentiment has been very noticeable at the ETF level.

The following chart shows that net flows into ETFs declined in the second quarter to $2.5 billion compared to $12.1 billion in the first quarter.

Net capital outflows have been observed since the beginning of June, when the old Mt. Gox problem resurfaced, along with the German government:

With the German government’s 50,000 BTC sales completed, net flows into ETFs have turned positive again. Cumulative investments in ETFs have reached a record high.

As expected, the redistributions in the Mt. Gox bankruptcy case (142,000 BTC) did not hit the market. More than 65% of creditors have already been repaid without any massive sales. Around 90,000 BTC still need to be redistributed according to Arkhamabout $6 billion.

China, the United States and Bitcoin

The outlook is brightening and the upcoming US presidential election is already a very good sign for bitcoin.

Once a skeptic, the former US president has finally changed his mind. The price of bitcoin even jumped nearly 10% after the assassination attempt last weekend.

His speech at the Nashville Bitcoin Conference, which will take place from July 25 to 27, promises to be explosive!

Also noteworthy is his running mate James Vance revealed in 2022 that he held between $100,000 and $250,000 in bitcoin…

Another reason for optimism is that the CEO of BlackRock – the world’s largest investment fund – continues to praise bitcoin.

“I did my homework. My opinion of bitcoin five years ago was wrong. I now believe bitcoin is legitimate. […]It is a legitimate financial instrument […]It is an instrument in which one invests when one is afraid, when one’s country devalues ​​its currency due to excessive budget deficits. It allows one to invest in something that is beyond the control of one’s government. I firmly believe that bitcoin has its place in a financial portfolio. […] “I see bitcoin as digital gold,” he told CNBC.

All that remains is to convince Xi Jinping of its merits. This will be difficult as long as China refuses to lift its capital controls. Indeed, no one can prevent bitcoin transactions.

One might imagine that the United States might accept Bitcoin Becomes International Store of Value If China agrees to open its financial borders, then there would be no reason to maintain the stigma of bitcoin.

Bitcoin-backed ETFs authorized in Hong Kong is an optimistic sign.

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Nicolas T.

Bitcoin, geopolitical, economic and energy journalist.

DISCLAIMER

The views, thoughts and opinions expressed in this article are solely those of the author and should not be considered investment advice. Do your own research before making any investment decision.

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