Bitcoin has reached a two-month high, fueled by bullish sentiment in the cryptocurrency market and a growing appetite for risk assets.

Bitcoin touched $70,000 on July 27, marking its highest point since mid-May. Alongside this, the broader cryptocurrency market saw gains of over 2.6%, indicating a steady uptrend.

Since last week, demand for Bitcoin and other digital assets has increased as bearish momentum subsided. According to data, BTC products received $519 million in capital between July 22 and July 26. For this month, Bitcoin’s inflows have exceeded $3.6 billion, primarily driven by U.S. spot BTC exchange-traded funds.

Historically, July has been a positive month for Bitcoin, and this year continues that trend. Bitcoin has surged over 15% in the past 30 days and has accumulated more than $19 billion in year-to-date inflows, setting a new record.

“Market sentiment is relatively optimistic due to recent remarks from former President Donald Trump and Senator Cynthia Lummis.”

Trump and Lummis have individually announced plans to create a national strategic BTC reserve. Lummis proposed that the U.S. Treasury purchase an additional one million BTC, while Trump promised to halt all government Bitcoin liquidation.

Analysts suggest that U.S. capital market linkage could attract more investor demand for BTC. This week, seven major U.S. tech giants are scheduled to release financial reports. Positive data from these reports could boost the Nasdaq’s weekly numbers and direct capital to assets like Bitcoin. Additionally, dovish remarks anticipated from the Federal Reserve this week could further support Bitcoin’s bullish outlook.

On-chain data shows that BTC balances on crypto exchanges increased by approximately 35,000 tokens between July 15 and July 28. Users often deposit BTC on trading platforms with intentions to sell. Approximately $2.4 billion in BTC deposited on exchanges could induce sell pressure on the asset. It is unclear if this figure includes repayments related to Mt. Gox, an event that could affect Bitcoin’s market price and hinder a potential rally above all-time highs.

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