U.S. stocks fell on Friday, while the crypto market rose.
Investors continued to sell off U.S. stocks , and the three major stock indexes were under severe selling pressure. As of the close of the day, the S&P, Dow Jones and Nasdaq all fell, down 0.71%, 0.93% and 0.81% respectively. The U.S. dollar index rose 0.23%, and the two-day increase reached 0.68%. The yield on the 10-year U.S. Treasury bond climbed to 4.241%.
While traditional financial markets are in adjustment, Bitpush data shows that Bitcoin has experienced its strongest day in more than a month, rising from $64,000 in the early U.S. trading hours and breaking through $67,000 later in the day, the first time since June 17. As of press time, Bitcoin is trading at $67,006, with a 24-hour increase of about 5%.
Altcoin followed Bitcoin's rebound, and most of the top 200 tokens by market capitalization achieved positive returns. Among the mainstream currencies, Solana (SOL) rose by 8.5%, breaking through $170 for the first time since early June.
Meme tokens Bonk (BONK) and Mog Coin (MOG) led the gains, up 21.9%, followed by DeFi platform Jito (JTO), up 16.8%. Aragon (ANT) was the biggest loser, down 5.5%, while Axelar (AXL) fell 4% and BinaryX (BNX) fell 3.62%.
The current overall market value of cryptocurrencies is $2.44 trillion, and Bitcoin’s market share is 54.3%.
Trump Considering Bitcoin as US Reserve Currency?
After the attack on former US President Trump, the crypto community bet that his chances of winning the 2024 presidential election soared. Yesterday, another piece of good news was released again.
Dennis Porter, co-founder of the nonprofit organization "Satoshi Act", said that sources told him that Trump may announce the establishment of a U.S. BTC strategic reserve at the upcoming 2024 Bitcoin Conference in Nashville.
In a follow-up tweet, he said: "Adding #Bitcoin to the US Treasury as a 'strategic reserve' is a no-brainer. Once the US does this, the paradigm will shift and the world will understand that they must have a place in #Bitcoin too. When the US leads, the world follows."
Although the Trump team has not confirmed or denied the rumor, the idea of using BTC as a reserve asset is not new, and several political leaders who support Bitcoin have previously advocated this move, including former US presidential candidate Vivek Ramaswamy, who has been advising Trump on Bitcoin and digital assets since January.
Bright prospects for the second half of the year
Ryze Labs analysts said the situation for Bitcoin may continue to improve as liquidity will improve in the second half of 2024.
“We remain optimistic that liquidity conditions will improve in the second half of 2024,” they said. “A weak economy should prompt the Fed to start cutting rates sooner rather than later as quantitative tightening tapers and inflation slows. Retail positions in Treasuries and money market funds remain high at $1.8 trillion, which are likely to flow into riskier assets once interest rates fall.”
“In addition, small and medium-sized enterprises tend to underperform in a high interest rate environment due to their high borrowing costs. Currently, the proportion of stocks outperforming the S&P 500 is 22%, a record low. We expect the proportion of stocks outperforming the index to expand significantly as monetary policy is relaxed,” they added.
As Bitcoin price breaks above $66,000, TradingView analyst The_ForexX_Mindset believes that $68,300 is the next resistance level to watch.
He said in the article: “The BTC value line is contracting around $68,300, which is a resistance level where trends are usually rejected. If I short, I would cash out at $6,7000, but Bitcoin still shows bullishness.”
Legendary trader Peter Brandt noted that an inverted head and shoulders pattern has formed on the BTC/GC_F (gold) chart, suggesting that Bitcoin could outperform gold five times over the next decade. “ The H&S trend ratio is 150 to 1, which means BTC will outperform gold five times faster ,” Brandt said on X-platform.
Market analyst Wolf said: “The actual target of BTC in this cycle is expected to be between $110,000 and $ 135,000 between the second and fourth quarters of 2025, with a potential target of up to $150,000 to $ 180,000.”
Steno Research analyst Mads Eberhardt is also optimistic about the second half of the year, which he believes is supported by a variety of favorable factors, including the upcoming interest rate cuts in the United States, increased liquidity, clear European regulations, and the increased likelihood of more support for cryptocurrencies from U.S. leadership. Eberhardt predicted on the X platform that the target price for Bitcoin in the second half of the year is $100,000 and the target price for Ethereum is $6,500.
Author: BitpushNews Mary Liu
Twitter: https://twitter.com/BitpushNewsCN
BitPush TG Exchange Group: https://t.me/BitPushCommunity
Bitpush TG subscription: https://t.me/bitpush
Btok subscription: https://btok360.com/bitpush
