Bitcoin has retreated after reaching a high of 70,000 USD again

On July 30, 2024, Bitcoin ( BTC ) briefly broke through the $70,000 mark after being quiet for more than a month, reaching a high of $70,050. This price peak attracted widespread attention in the market, and many began to speculate whether Bitcoin would reach new highs again. However, due to the high volatility and unpredictability of the market, this peak did not last long, and the price of Bitcoin quickly fell back. This serves as a reminder to investors that the cryptocurrency market is fraught with risks and uncertainties.

Nashville Bitcoin Conference Boosts Market Sentiment

The recent short-term surge in Bitcoin prices is partly due to the Bitcoin conference held in Nashville, Tennessee, from July 25 to 27, 2024. This conference has attracted global attention due to its scale and influence, as well as the attendance and speech of Trump. Trump's remarks sparked widespread discussion and market reactions at the conference.

Trump's Remarks and Proposals

Trump proposed a series of bold suggestions regarding Bitcoin at the conference, including establishing a U.S. Bitcoin strategic reserve and firing the current chairman of the U.S. Securities and Exchange Commission. He believes that these measures will help the U.S. gain a leading position in the global cryptocurrency space. Furthermore, Trump claimed that the U.S. would become the center of global cryptocurrency, even becoming a "Bitcoin superpower." These statements not only sparked heated discussions at the conference but also had a direct impact on the Bitcoin market, briefly driving up prices.

Other Important Speeches Promote Market Expectations

Apart from Trump, the speeches of other important figures have also attracted widespread attention. U.S. presidential candidate Robert F. Kennedy Jr. stated that if elected president, he would direct the U.S. Treasury to purchase 550 Bitcoins every day until reserves reach 4 million. He believes this will significantly increase the valuation of Bitcoin, potentially pushing its market value to several trillion dollars. He also proposed changing IRS policies to make transactions between Bitcoin and U.S. dollars exempt from reporting and taxation.

U.S. Senator Cynthia Lummis suggested that the government purchase 5% of the total supply of Bitcoin and hold it for at least 20 years. The founder of a well-known company supports this proposal and predicts that the price of Bitcoin could reach $49 million by 2045. The head of digital assets at a certain asset management company called on investors to actively purchase Bitcoin ETFs, pointing out that almost all ETF buyers are long-term holders.

Market corrections indicate risks and uncertainties

Despite the support from positive remarks and market activities, Bitcoin quickly retraced after breaking through $70,000, possibly related to the market's expectations of a potential pullback after the conference. A report noted that the implied volatility in the Bitcoin options market had soared but has recently declined, which may indicate that prices will slightly consolidate in the short term.

In addition, on the morning of July 30, a well-known address reappeared with small test transfers. Considering that there have been large transfers following similar operations in the past, this intensified market panic and further amplified the correction. The low point of the correction occurred shortly after the related news broke, reminding investors that the volatility and uncertainty in the Bitcoin market remain high.

ETF market performs strongly

Despite the volatility in the Bitcoin market, the ETF market remains strong. Data shows that on July 29, the U.S. Bitcoin spot ETF saw a net inflow of $123.1 million. In the past half month, within just trading days (, the ETF market only experienced a net outflow on one day, while on other days it maintained a positive inflow, indicating that institutional investors are optimistic about the long-term prospects of Bitcoin.

Bitcoin ecological projects attract attention

With price fluctuations, some Bitcoin ecosystem projects are also attracting the attention of investors. In particular, projects closely related to Bitcoin, such as SATS and CKB, are gaining more attention. SATS is a leading project in the Bitcoin ecosystem, with meme attributes, showing strong performance recently. CKB is a project dedicated to addressing the shortcomings of the Bitcoin ecosystem, continuously enhancing its strength in technological competition.

Significant Changes in the POW Sector

Proof of Work ) POW ( sector coins such as BCH, KAS, and BSV have performed excellently recently. After Trump attended the conference, these coins saw significant short-term increases of 15%, 12%, and 18%, respectively. The market believes this is related to Trump's favorable policies for the mining industry. The popularity of POW coins has surged significantly in a short time, with substantial inflows of funds and traffic.

The change in open interest is also an important market indicator. For example, the open interest in BCH has recently increased, indicating an influx of hot money. By observing contract data, one can track the flow of major funds in the market, such as an increase in long positions and an expansion in trading volume; these are all important references for determining market trends.

Summary

After the price of Bitcoin broke through 70,000 USD, it quickly retraced, indicating the high volatility and complexity of the market. Despite numerous positive news and policy support, the performance of the Bitcoin market remains full of uncertainty. As more institutional investors participate and the global policy environment changes, the prospects for Bitcoin still hold many variables. Investors should remain cautious, pay attention to market dynamics, and practice good risk management.

Subsequent focus should be on Bitcoin ecosystem projects such as SATS and CKB, as well as POW sector coins like BCH, KAS, and BSV. The performance of these projects and sectors will be significantly influenced by policy changes and market sentiment, and investors need to closely monitor relevant dynamics to make informed investment decisions.