Bitcoin (BTC) encountered a correction following the halving event in April, only to resurge and hit a 30-day peak of $68,477.85 on Jul 22. Currently trading above the $67,000 support level, BTC appears poised to breach the $70,000 resistance soon.
Long BTC contracts on Jul 22 totaled $1.28 billion, surpassing short positions at $1.20 billion. This imbalance is expected to drive BTC into a bullish phase, enticing more investors.
Factors Fueling Bitcoin’s Surge
Ongoing political developments in the U.S., including President Joe Biden’s withdrawal from the presidential race, have favored BTC. With Donald Trump’s pro-crypto stance and acceptance of digital asset donations, the environment is conducive for BTC’s growth. Moreover, Germany’s decision to cease Bitcoin liquidations, along with the approval of spot Bitcoin ETFs, has piqued interest among hedge fund managers.
Noteworthy investment firms like Millennium Management and Citadel Advisors have started building long-term positions in iShares Bitcoin Trust (IBIT). Expectations of an interest rate cut in the face of economic weakening are further pushing investors towards alternative assets like BTC.
Historically, BTC prices have surged 12 to 18 months post-halving. This trend, coupled with predictions by Cathie Woods of a $3.8 million BTC value by 2030, signals a promising future for the cryptocurrency.
Bitcoin Bull Run Benefits NVDA, COIN, SQ
NVIDIA
NVIDIA, known for designing GPUs for crypto mining, holds a Zacks Rank #3. Earnings estimates for NVIDIA have shown a 10.3% increase over the past 60 days, with an anticipated growth rate of 106.2% for the current year.
Coinbase
As the largest U.S. cryptocurrency exchange, Coinbase (COIN) is positioned with a Zacks Rank #2. Analysts predict a 1,740.5% earnings growth rate for Coinbase this year.
Block
Block, a digital payment firm, profits from its Cash App where Bitcoin transactions occur. Block, currently holding a Zacks Rank #2, has seen a rise in earnings estimates by 0.7% over the past 60 days, with an expected earnings growth rate of 72.8% for this year.