Key Points
- The total cryptocurrency market cap increased by over 3 percent, led by Bitcoin (BTC), reaching around $2.21 trillion.
- The German government recently accumulated back 3.6K Bitcoins after offloading more than 23k Bitcoins.
The total cryptocurrency market capitalization has seen a surge of over 3 percent in the past 24 hours. This surge was primarily led by Bitcoin (BTC), which has brought the market cap to approximately $2.21 trillion.
Bitcoin’s price has formed a potential reversal pattern which could indicate a new bull run in the future.
Bitcoin’s Historical Rebounds
Historically, Bitcoin’s price has rebounded each time there has been an atmosphere of fear, uncertainty, and doubt (FUD) amongst investors.
The fear and greed index for Bitcoin dropped to 27 percent on Tuesday, indicating an increase in fear from 44 percent last week.
German Government’s Bitcoin Trading Tactics
Bitcoin’s price has recently been under pressure due to increased on-chain activities from whale addresses.
In the past 20 days, a Bitcoin address associated with the German government offloaded more than 23k Bitcoins, leaving it with about 27,461 coins.
On Monday, the German government transferred around 19,521 coins, worth around $1 billion to wallets belonging to different over-the-counter (OTC) firms, including Flow Traders and Cumberland.
The sentiment shifted when the German government received 3,673 Bitcoins from centralized exchanges.
The cryptocurrency market has also experienced bearish sentiments due to Mt. Gox’s $9 billion repayment. However, analysts believe that the Mt. Gox fund distribution will gradually fade away in the near term as most recipients are long-term holders.
The US spot Bitcoin ETFs registered nearly $300 million in cash inflows on Monday led by BlackRock’s IBIT. Remarkably, none of the US spot Bitcoin ETFs on Monday registered net cash outflows, indicating a rising Bitcoin demand from institutional investors.
The demand for Bitcoin among institutional investors is thought to be driven by the upcoming interest rate cut amid the general elections. Furthermore, the Fed has remained dovish in the recent past amid the declining inflation.
Bitcoin’s price has been consolidating for the past four months, despite the reduced inflation due to the recent fourth halving event. From a technical perspective, Bitcoin’s price must consistently close above the 200-day Moving Average (MA) in the coming weeks to invalidate further capitulation.
Currently, Bitcoin’s price continues to hover around the lower border of a falling channel that began four months ago. The daily Relative Strength Index (RSI) has been hovering around the oversold levels in the past few weeks, signaling a possible reversal in the near term.
According to analysis provided by Spot On Chain, Bitcoin’s price is on track to reach $100K by the end of this year.