As the week kicks off with optimism, bitcoin’s price surged to within 5.7% of its peak today.
Bitcoin (BTC) is again making headlines as it is nearly $70,000. The leading digital asset is now only 6% away from breaking its previous all-time high, fueling excitement and confidence in the crypto market.
According to charting platform TradingView, BTC touched $69,775 on July 29, 2024. This development moved the asset to within 5.7% of its all-time peak of $73,757, recorded on March 14. It is the highest that the crypto asset has traded since June 13, when it touched $70,000 but faced resistance and pulled back.
A closer look at the asset’s performance today reveals positive sentiment compared to its performance several weeks back.
Possible Reasons for BTC Surge
Bitcoin’s recent surge can be attributed to several factors. For instance, numerous financial institutions and major corporations have announced plans to integrate BTC into their operations in recent months. Asset management giants like BlackRock and Fidelity have launched Bitcoin-related products, allowing their clients to gain exposure to the digital asset. Additionally, big players like MicroStrategy continue to hold significant BTC in its reverses, strengthening its position as a valuable asset.
United States presidential candidate Senator Cynthia Lummis discussed creating a strategic BTC reserve for the United States at the Bitcoin 2024 conference in Nashville, Tennessee, which ran from July 25 to 27.
Lummis proposed that the US government buy 5% of the world’s Bitcoin supply and hold it for at least 20 years.
She further explained that if approved, the strategy would be executed over five years, with the US government acquiring one million BTC, approximately 5% of the total 21 million Bitcoin supply.
On the other hand, presidential candidate Donald Trump said that if he gets elected, the government would cease any further sales. If this happens, it could exert significant buying pressure and cause a supply shock in the BTC markets.
