Bitcoin passes the $107,000 mark: Is the period of stagnation over?

Bitcoin passes the $107,000 mark: Is the period of stagnation over?

Recent weeks have brought significant reversals to the cryptocurrency market. The largest digital currency, Bitcoin (BTC), recently broke above the $107,000 mark for the first time in a long time and has seen a sharp rise, indicating a possible reversal in the trend.

Dynamic growth after periods of stagnation

As of July 2, Bitcoin was trading just above $107,000, specifically at $107,111 (according to data from crypto.news). Although it briefly dropped to around $106,982 during the day, it quickly bounced back above the magical threshold. This move indicates the strength of buyers and the possible start of a new rally.

Bitcoin has gained roughly 0.44% over the past seven days and roughly 2% overall over the past two weeks. Although the growth is not dramatic, it is clear that the market is starting to show signs of recovery after a period of stagnation that lasted several weeks.

Increased market interest and higher trading volumes

The sharp rise in price has been accompanied by significant trader activity. The daily trading volume of BTC has increased by almost 23%, currently reaching $26.8 billion. This increased liquidity suggests that there is more interest and more active investors in the market, which may be a harbinger of further growth.

What is behind the current growth?

The main factors are aggressive institutional accumulation and the strategies of big players such as Michael Saylor, who are actively buying Bitcoin as a safe asset. In addition, the weakening of the US dollar, which lost over 10% in the first half of the year, is boosting interest in alternative assets, including cryptocurrencies and gold.

Geopolitical tensions, such as those between Iran and Israel, and uncertainty over the Fed's monetary policy are also contributing to the growing interest in Bitcoin as a safe haven.

Could July bring a new high?

According to analysts at Matrixport, it is possible that Bitcoin will reach a new all-time high this July - estimated as high as $116,000. History shows that July is often a period of gains for Bitcoin. For example, it rose 23.9% in 2020, and the following years have followed a similar pattern.

"The average gain in July is over 9%, which creates an upward trend," analysts say. If this tradition repeats itself this year, we could see Bitcoin strengthen significantly.

Conclusion.

Although the outlook is positive, the market still bears signs of uncertainty. It is possible that Bitcoin will move higher due to institutional buying and global geopolitical factors, or conversely, there will be a slight cooling. One thing is certain, however - the period of stagnation may finally be over and cryptocurrency markets may be starting to awaken to new growth.

Stay tuned for further developments and watch for July to bring Bitcoin to even higher highs!

*This is not an investment recommendation.

Coingarage Team