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US National Debt Surpassing $35T and Its Impact on Bitcoin
Jul. 29, 2024. 2 mins. read.
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Bitcoin bulls aim to reclaim key levels as BTC approaches $70,000, coinciding with a US debt milestone, hinting at a potential surge by month's end.
Bitcoin bulls are pushing to reclaim key resistance levels as BTC price movement hints at a potential surge towards $70,000 amid a historic milestone for the US national debt.
Bitcoin is setting up for a dramatic end to July as its price nears $70,000 just in time for the monthly close. Investors are eager to see if bulls can reclaim crucial psychological levels and sustain momentum.
The weekly close saved the market from a downturn, but continued upward movement is now crucial. Positive signs are evident on paper: miners are recovering, macroeconomic signals are increasingly favoring risk assets, and traders are optimistic about the end of Bitcoin’s post-halving retracement.
However, volatility is expected as the US Federal Reserve is set to decide on interest rates this week, with Chair Jerome Powell’s comments having the potential to move markets. Additionally, US unemployment data due at the end of the week could introduce further fluctuations in crypto prices.
Bitcoin has bounced back to challenge final resistance levels, with BTC/USD reaching $69,848, its highest since June 10. Traders remain optimistic as Bitcoin approaches key resistance below March’s all-time highs. One trader, Jelle, noted, “Every halving event, Bitcoin goes through a couple months of choppy price action. Once that phase comes to an end, the true bull market starts. This time probably won’t be different.”
Amid these developments, US national debt has hit $35 trillion for the first time in history, adding to the market’s potential volatility. Powell’s press conference following the Federal Open Market Committee (FOMC) decision on interest rates will be closely watched. Although markets expect no rate cuts until September, Powell’s language could influence longer-term economic expectations.
Bitcoin mining difficulty is also set to hit new highs, with an estimated 8% increase taking it to 88.61 trillion. This follows a 3.2% increase two weeks prior, indicating a miner renaissance. Despite this, on-chain analytics platform CryptoQuant warned that the overall profitability of the mining sphere is still in its early stages of recovery.
The Crypto Fear & Greed Index, a sentiment indicator, is approaching “extreme greed,” reflecting the bullish sentiment among traders as Bitcoin nears price discovery. With BTC/USD potentially retesting all-time highs, the market is bracing for an eventful week ahead.
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