Bitcoin is firm at spot rates but struggling to shake off the bears of the past two trading days. Looking at the formation in the daily chart, there are pockets of weakness. However, this might change should bulls push on, rejecting lower lows and reclaiming $70,000 and even $72,000.
Trump Effect? New BTC Investors Rise By 3% When Prices Rose From $57,000 to $69,000
As the community tracks price performance, there are other exciting developments cementing the conviction that the coin could be preparing for higher highs. Citing on-chain data, one analyst noted that when prices spiked from $57,000 to $69,000, the rally attracted new investors.
During this time, the number of new investors grew by 3%, a notable increase since the post-FTX crash only saw the number of new users increase by just 4%. Interestingly, new investors are willing to get exposure at this pace, which suggests that they are optimistic about what lies ahead.
The uptick in Bitcoin prices from $57,000 to the recent swing high of $69,000 coincides with crucial events in the United States. On July 14, Donald Trump, who is vying to unseat Joe Biden in November, was shot in a failed assassination attempt. This failure saw the odds of Trump reclaiming the presidency shoot up.
Last weekend, Trump delivered a keynote address at the Bitcoin Conference in Nashville. The former president reiterated his support for the world’s most valuable cryptocurrency. Trump assured the community that he would fire the current United States Securities and Exchange Commission (SEC) chair, Gary Gensler, and hire someone ready to deliver a crypto future where the country leads.
Trump also said that his administration would consider making BTC a strategic reserve. So far, Senator Cynthia Lummis has prepared a draft bill directing the Treasury to purchase 200,000 BTC annually for five years. That the former president has turned around and now backs crypto could explain why more users are flocking in, keen to get exposure.
Bitcoin: A Whale’s Court?
Beyond the endorsement of Trump and new users flowing in, on-chain data shows that the average monthly transfer volumes remain elevated. As of July 31, the analyst said the average monthly transfer volume fluctuates between 700,000 and 1 million BTC over the last 18 months.
While the figure suggests that whales are in the picture and dominating events, the average transfer volume is lower. Since mid-2022, it has been crashing, peaking at 6 million BTC during the Luna Crash before stabilizing throughout the last 18 months.
Feature image from Canva, chart from TradingView
