After consolidating for six months, some bulls predict that Bitcoin is about to experience a "perfect storm"...
On Wednesday, Bitcoin surged nearly 3%, breaking above $68,000, with some bulls once again aiming for the historical high that Bitcoin set in March.
Brett Munster of Blockforce Capital wrote, "Bitcoin prices have undergone six months of consolidation, and I am ready for the perfect storm for Bitcoin and other crypto assets."
The last time Bitcoin reached $70,000 was in July, when it set a historical high of nearly $74,000 in March of this year.
Munster wrote, "Global liquidity is on the rise again, with central banks around the world injecting cheap capital into their economies. In the past, when global liquidity has exceeded its moving average, it has often been accompanied by a significant increase in Bitcoin prices."
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This week, U.S. Vice President Harris pledged to support a regulatory framework for cryptocurrencies, further bolstering optimism in the crypto community. This acknowledgment comes after years of complaints from the crypto industry about U.S. officials choosing to regulate through enforcement rather than clearly.
Former President Trump is also actively seeking crypto voters in the current presidential campaign, competing with Harris and having several ongoing projects related to cryptocurrencies.
However, it is worth noting that Tesla CEO Musk may sell his holdings of Bitcoin.
Tesla is one of the largest corporate holders of Bitcoin, having transferred nearly all of its $760 million in Bitcoin to an unknown wallet, raising the possibility that the automaker may be selling.
According to crypto data company Arkham Intelligence, on Tuesday, wallets associated with the electric vehicle manufacturer transferred over 11,500 Bitcoins to wallets with unknown ownership.Tesla's wallet retains only about $6.65 worth of Bitcoin, essentially zero.
According to BitcoinTreasuries data, Tesla is the fourth-largest holder of Bitcoin among U.S. public companies. The top three Bitcoin holders are software company MicroStrategy and Bitcoin mining companies MARA Holdings and Riot Platforms.
Based on Arkham's data, Tesla purchased $1.5 billion worth of Bitcoin in February 2021 and held up to $2.5 billion worth of Bitcoin at one point.
However, the company sold 75% of its holdings at a loss in early 2022. In March of this year, Tesla held approximately 11,509 Bitcoins, valued at around $770 million.
Musk had previously announced that Tesla would soon accept Bitcoin payments when the company first acquired its Bitcoin reserves, but the plan was abandoned shortly thereafter due to environmental concerns.
Although some of Musk's companies, including Tesla and SpaceX, hold Bitcoin on their balance sheets, in a July interview, Musk stated that he believes "Bitcoin and some other cryptocurrencies have some value," but he has a particular fondness for Dogecoin.