After a rough couple of months, Bitcoin is finally making a comeback! Prices are climbing back above $62,000, leaving the recent slump in the dust.
Bitcoin Shakes Off the Blues
One analyst says Bitcoin is turning a corner, citing positive on-chain data. They believe we could see even more gains in the coming weeks or months.
The recent rally comes after a period of uncertainty and negative news. The German government’s decision to sell off a large chunk of Bitcoin, and news of Mt. Gox creditors planning to distribute their coins, dampened sentiment.
The drop in Bitcoin prices also led to investors pulling money out of spot Bitcoin ETFs. And the Federal Reserve’s announcement of a slower rate hike than expected added to the bearish mood.
The Big Turnaround: Bitcoin Prices Soar, Miners Rejoice
But the tide turned over the weekend. The analyst believes a recent event involving former President Trump could boost Bitcoin’s prospects. Trump has become more supportive of Bitcoin and crypto, even encouraging mining activity.
The price surge is also fueled by increased liquidity in the market, especially for stablecoins like USDT and USDC.
With prices back above $62,700, short-term Bitcoin holders are finally in the green. Higher prices are also a welcome relief for miners, who are no longer operating at a loss. This means fewer miners will be tempted to sell their Bitcoin.
The rising price of Bitcoin is also reflected in the premium Coinbase clients are paying to receive it. This suggests that the momentum for further gains is building, which is great news for buyers.
