Katie Stockton, managing partner at Fairlead Strategies, said Bitcoin is no longer oversold, though it has not yet reached overbought levels. She pointed to Bitcoin’s move above its 200-day moving average in May and said a potential breakout could be close. Bitcoin started rising last week after news that the U.S. Treasury would at least double the size of its liquidity-supporting buyback operations. The token is up more than 22% over the past seven days, recently trading near $78,915 after briefly topping $81,000 on Monday. For much of June and July, Bitcoin traded below $65,000 and saw its lowest volatility in 17 years. Analysts cited a possible return of the “debasement trade,” with investors buying assets when they expect fiat currencies to lose value. The dollar weakened after the Treasury announcement, while gold and Bitcoin climbed. U.S. investors also returned to spot Bitcoin ETFs last week, driving nearly $2 billion in inflows. Separately, President Donald Trump met crypto executives at the White House and said passage of the Clarity Act would help the U.S. stay ahead. The bill, delayed from an August vote to September, would create a framework to distinguish digital assets categorized as securities, commodities, and payment stablecoins.
Katie Stockton, managing partner at Fairlead Strategies, said Bitcoin is no longer in oversold territory, although it has not yet become overbought. She said Bitcoin moved above its 200-day moving average in May, and a potential breakout may be approaching.
Bitcoin began rising last week after news that the U.S. Treasury would at least double the size of its liquidity-supporting buyback operations. Over the past seven days, Bitcoin has gained more than 22% and was recently trading around $78,915. On Monday, it briefly moved above $81,000.
Price rebound follows an extended low-volatility stretch
For most of June and July, Bitcoin traded below $65,000 and went through its lowest volatility in 17 years.
Analysts said the so-called debasement trade may be picking up again, referring to investors buying assets when they believe fiat currencies are losing value. After the Treasury announcement, the U.S. dollar fell, while gold and Bitcoin both moved higher.
ETF inflows return as Washington debate continues
U.S. investors returned to Bitcoin ETFs last week, bringing in nearly $2 billion of inflows.
Separately, President Donald Trump met with crypto executives at the White House last week and said that passing the Clarity Act would help the United States stay ahead. The bill had been scheduled for a vote in August, but that has now been pushed to September. It would establish a framework for distinguishing digital assets classified as securities, commodities, and payment stablecoins.
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