President Biden's recent announcement of his retirement from politics fueled bullish speculation. Elon Musk's laser eyes in the X-Files attracted cryptocurrency hype.
Bitcoin [BTC] moved higher over the weekend, driven by unexpected events. This included a major announcement regarding Joe Biden’s presidency and a possible hint from Elon Musk about his current stance on cryptocurrencies.
The Bitcoin community took a more optimistic stance after Joe Biden announced he would not run for re-election.
The current acting president of the United States is not particularly keen on supporting cryptocurrencies. This is in stark contrast to Donald Trump, who recently revealed that he supports Bitcoin. The news suggests that there is a higher chance that Trump will be re-elected as president, and therefore good sentiment in the Bitcoin market.
Meanwhile, another key figure may have influenced Bitcoin’s bullish outlook. Elon Musk recently changed up his X-Files by adding laser eyes.
Reactions and comments on the matter suggest that the market is interpreting Elon Musk's laser eyes as a sign of his bullishness.
Bitcoin approaches its highest range
Prior to Bitcoin’s sustained rally over the past week or so, bullish sentiment had faded as the cryptocurrency formed a double top. The outcome has been likened to the 2021 high, leading to a sharp price correction.
However, Bitcoin managed to break through $68,000 over the weekend. Why is this important?
The $68,000 price range means Bitcoin would need less than a 10% move to retest its previous high. In other words, a new ATH is now more likely.
This could also eliminate twin concerns that the bull run may be over. , Bitcoin was trading at $67,269.
Exchange data points to demand
We also present noteworthy observations consistent with the political environment and overall demand conditions in the market. Our assessment of Bitcoin demand shows that foreign exchange reserves have extended its downside.
The last time foreign exchange reserves were this low was in February 2018. It speaks volumes about the growing demand for Bitcoin. Moreover, the recent recovery we have witnessed has also encouraged a surge in Bitcoin mining reserves.
Read Bitcoin's [BTC] price prediction 2024-25
Mineral reserves have seen outflows before. Bitcoin’s halving in April means miners will be less profitable, and some will find themselves unable to break even and be forced to sell.
The recent surge in miner reserves suggests that miners are more willing to hold their cryptocurrencies in anticipation of potential higher prices.
