Key Points
- Bitcoin (BTC) has hit record highs in Europe and Canada, driven by renewed investor interest.
- Despite the positive outlook, potential sell-offs by governments could impact the market sentiment.
Bitcoin (BTC) has been performing exceptionally well worldwide, achieving new all-time highs in various markets. The leading digital asset has seen a surge in investor interest, leading to record-breaking levels in Europe and Canada, surpassing previous records set in March.
New Bitcoin Records in Canada and Europe
In Canada, Bitcoin’s value soared past C$100,000 for the first time, reaching C$101,078 as per data from the Kraken exchange. This price point placed Bitcoin around C$2,500 above its previous all-time high of C$98,462, set in March.
The broader financial market played a significant role in Bitcoin’s rise. The Canadian dollar has recently lost some ground against its U.S. counterpart due to a 50-basis point rate cut implemented by the Bank of Canada. This led to the Canadian currency trading at C$1 to 72 cents.
Similarly, Bitcoin reached a new all-time high in the eurozone, confirmed by several sources after approximately seven months. Data from TradingView confirms that BTC/EUR climbed to a record €67,987 on the Binance exchange, indicating a significant momentum gain for Bitcoin in the Eurozone.
In the U.S. market, Bitcoin was just a few hundred dollars short of breaking its March all-time high of $73,750. The price reached as high as $73,544 on Tuesday but faced significant resistance before retesting the all-time high.
Potential Impact of Government Sell-offs
Despite maintaining a positive outlook, CoinMarketCap data shows BTC has corrected to $72,278 at the time of writing. However, its 52-week growth has exceeded 109% amid sustained optimism.
In addition to Bitcoin’s upward price trajectory, Arkham Intelligence noted some significant events in the crypto space. They reported that the Bhutan government moved a substantial amount of its Bitcoin holdings, depositing a massive 1,000 BTC into an address on the Binance crypto exchange.
This deposit sparked rumors of a potential sell-off in the crypto community. If the Bhutanese government decides to sell, it could significantly impact traders’ sentiment on Bitcoin, depending on the volume they decide to offload.
Previously, when the German government sold over 50,000 Bitcoin in a few weeks, the price dropped from around $70,000 to $61,000 within days. The German government signaled the sale by transferring Bitcoin to exchanges, similarly to what the Bhutan government has done. This sale by the German authority affected the overall bullish sentiment.
There are concerns about the potential impact such a move could have on the broader financial market. It could prompt Bitcoin holders to lock in their gains and watch the market unfold, potentially slowing Bitcoin’s climb to a new record all-time high, as seen recently in Canada and Europe.
