Financial markets continued to rally on Tuesday, with U.S. stocks, gold and cryptocurrency markets all surging.
In the crypto market, Bitpush data showed that Bitcoin hit its highest price in four weeks during the session, soaring above $65,000 for the first time since the end of June. As of press time, the trading price was $64,804, up 1.9% in 24 hours.
The strongest performer among major Altcoin was XRP , which rose 9% on Tuesday, extending its weekly gains to 35%. The broader Altcoin market also benefited from investor enthusiasm, with 90% of the top 200 tokens by market cap rising.
Worldcoin (WLD) was the best performer, up 24.3%, followed by Terra Classic (LUNC) up 20%, and Core (CORE) up 18.2%. WEMIX (WEMIX) was the biggest loser, down 8.3%, TRON (TRX) down 2.8%, and Uniswap (UNI) down 2.7%.
The current overall market value of cryptocurrencies is $2.38 trillion, and Bitcoin’s market share is 53.9%.
In terms of US stocks, at the close, the S&P 500, Dow Jones and Nasdaq all rose, up 0.64%, 1.85% and 0.20% respectively. The Dow Jones continued to rise strongly, breaking through 40,000 points and setting a new record high of 40,988 points.
Investors are increasingly convinced that a rate cut is imminent. The Chicago Mercantile Exchange's Fed Watch tool shows that investors currently believe that the probability of a rate cut in September is 100%. Influenced by this news, gold prices also soared to a record high, breaking through $2,474, up 1.87% on the day.
Mt. Gox selling pressure “overestimated”
After hitting a high near $65,000 on Monday, Bitcoin retreated to $62,440 in early trading on Tuesday following news reports that Mt. Gox 's bitcoins had been transferred to Kraken for distribution to creditors.
Following the German government’s recent sale of 50,000 BTC, the Mt. Gox incident has once again raised concerns about a massive Bitcoin sell-off.
Akshay Nassa, founder of Chimp Exchange, believes: "Mt Gox has reignited the market's panic over the sale of Bitcoin, a trend that may have a greater impact on trader sentiment than the German sell-off. After this latest transfer, Mt Gox now holds 138,985 BTC, worth $8.86 billion. Repayments will come in the next few months, and beneficiaries are expected to sell their tokens. The market reaction is that BTC fell from $65,000 to $63,000. If no other positive news enters the market soon, the market reaction may be more severe."
However, Ki Young Ju , CEO of cryptocurrency analytics firm CryptoQuant, believes that concerns about selling pressure are “overestimated” and will not derail the ongoing cryptocurrency rally.
“I believe this repayment will not end the bullish trend as these tokens are expected to react to market sentiment similarly to the existing Bitcoin supply,” he explained in the X post. “Unlike the German government sell-off, Mt. Gox creditors were not forced to sell, so this was not pure sell-side liquidity.”
Alex Krüger, a well-known cryptocurrency and macro analyst, estimates that if Mt. Gox creditors sell off their recovered assets en masse, the price of Bitcoin could fall by up to 10%.
CoinMetrics also stated in a report that based on Bitcoin's current market depth and trading volume, if Mt. Gox creditors liquidate assets in an orderly manner and last for several weeks, the market should be able to absorb these assets.
“Assuming the liquidations are gradual and involve multiple exchanges, ~65,000 BTC (worth ~$1.95 billion at current prices) could be absorbed by the market in a matter of weeks without causing major disruptions,” CoinMetrics analysts wrote.
Favorable political environment
Joel Kruger, market strategist at LMAX Group, said in a report that Bitcoin’s rebound can be attributed to buyers buying the cryptocurrency on dips and favorable shifts in the political sphere.
“We believe the price rally is a combination of medium- to long-term players looking to add to their positions following a healthy decline in BTC,” Kruger said. “We also see political factors influencing this rally, especially with the possibility of President Trump being crypto-friendly rising over the weekend.”
Investors believe that the failed assassination attempt on former US President Donald Trump will benefit the Republican Party he represents in the November election, and a Republican victory may bring favorable tax and fiscal policies to investors.
Jacob Martin, a cryptocurrency lawyer and co-founder of 2 Punks Capital, also sees the potential for a favorable political environment to boost market sentiment.
“I think it’s clear that one side is trying to support innovation and keep it here in the U.S., while the other side is constantly speaking out against big tech (or working with them), against small tech, against innovation in areas like AI, cryptocurrencies, etc.,” Jacob Martin said in a report. “With over 90 million Americans holding cryptocurrencies directly or otherwise, either through Coinbase or ETFs, cryptocurrencies and advancing innovation in the U.S. are one of the few major things that deserves consideration by single-issue voters. I think this is very important.”
Trump's choice of pro-cryptocurrency Vice President JD Vance also boosted sentiment among crypto investors, with Bitcoin rising about 3% in the hours after the nomination was announced.
Neil Roarty, an analyst at Stocklytics, said: “Cryptocurrency investors remain optimistic if With JD Vance running alongside Trump in the White House (an outcome that looks increasingly likely), there’s a sense that pro-crypto policies could be on the table by 2025.”
Author: BitpushNews Mary Liu
Twitter: https://twitter.com/BitpushNews
BitPush TG Exchange Group: https://t.me/BitPushCommunity
Bitpush TG subscription: https://t.me/bitpush
Btok subscription: https://btok360.com/bitpush
