TLDR

  • Bitcoin is approaching $70,000, its highest level in six weeks
  • July 29 marks 100 days since Bitcoin’s latest halving event
  • Donald Trump pledged support for Bitcoin at a recent conference
  • Senator Cynthia Lummis plans to introduce a bill for the U.S. to purchase Bitcoin
  • Historical data suggests Bitcoin tends to rally significantly 100 days after halving events

Bitcoin, the world’s largest cryptocurrency, is approaching the $70,000 mark, reaching its highest level in six weeks.

This surge comes as political figures voice increased support for digital assets and the effects of Bitcoin’s recent halving event begin to materialize.

On July 29, 2024, Bitcoin traded at around $69,800, up 3.32% in the last 24 hours. This price movement coincides with the 100-day mark since Bitcoin’s fourth halving event, which occurred on April 20, 2024. During this event, the reward for mining new blocks on the Bitcoin blockchain was reduced from 6.25 BTC to 3.125 BTC per block.

Historically, Bitcoin has shown significant price increases in the months following halving events. Research by ETC Group suggests that the impact of halving on Bitcoin’s price tends to become more pronounced after the first 100 days.

Andre Dragosch, head of research at ETC Group, noted,

“The market tends to have a short memory, but the halving-induced supply deficit should just start taking effect from now on.”

The current price surge is also influenced by recent political developments. At the Bitcoin 2024 conference in Nashville, former U.S. President and Republican presidential nominee Donald Trump pledged support for cryptocurrency.

Trump stated that if elected in November, he would create a “strategic bitcoin reserve” and prevent the U.S. from selling its existing holdings. He also expressed intentions to fire Gary Gensler, the current Chair of the Securities and Exchange Commission.

Adding to the political momentum, Senator Cynthia Lummis announced plans to introduce a bill next week. This legislation would direct the U.S. Treasury to purchase 1 million bitcoins, approximately $68 billion worth, over five years. According to Lummis, these bitcoins would be held for at least 20 years unless sold to reduce national debt.

These political developments have sparked optimism among investors. Justin d’Anethan, head of APAC business development at crypto market maker Keyrock, commented, “The current positive statement regarding crypto from many politicians and economic stakeholders is bolstering investor sentiment.”

The cryptocurrency market as a whole has shown positive movement.

Ether, the second-largest cryptocurrency, traded up 4.28% at $3,350, while Solana climbed 5.9% to around $193 over the past 24 hours. Bitcoin Cash (BCH) also saw significant gains, rising over 10% despite expectations that it might struggle due to Mt. Gox finishing its token distribution to creditors.

As the U.S. presidential election approaches, the cryptocurrency market is likely to remain sensitive to political developments. Peter Chung, head of research at Presto, emphasized the importance of following election developments between now and November, stating they have become “more important than ever” for the crypto market.

The post Bitcoin (BTC) Price Pump: Nears $70,000 Mark 100 Days After Halving Event appeared first on Blockonomi.

from Blockonomi https://ift.tt/SOQ0WCK