🌎 Bitcoin’s 20% Surge Sparks Bullish Sentiment Amid Key Developments

Bitcoin’s recent 20% surge over the past three weeks has reinvigorated bullish sentiments among traders, according to data. This sentiment shift marks the most positive outlook on Bitcoin since March 2023, with the term “Bitcoin” being discussed more favorably on social media than at any point in the last 16 months.

Bitcoin’s +20% 3-week price rally has left traders feeling significantly more optimistic than they were at the beginning of the month. The ratio of positive vs. negative comments toward BTC has reached its highest level since March 2023, as an all-time high is now back on radars.

Santiment’s weighted sentiment index, which gauges the ratio of positive to negative comments on X, has soared to a 16-month high. The price rally has seen Bitcoin surpass the $67,000 mark, reflecting a 6.22% increase since July 25. Bitcoin’s price touched $69,404 on July 28, its highest since June 12, although it’s currently trading around $67,770.

This bullish turn follows cooler-than-expected inflation data, suggesting potential multiple interest rate cuts by the U.S. Federal Reserve this year. The leading cryptocurrency has climbed over 23% from its local bottom of $53,550 on July 5, spurred by strong dip-buying from Bitcoin ETF investors.

Key Developments Supporting Bitcoin’s Surge

Several key developments have further bolstered the positive sentiment around Bitcoin:

Bitcoin ETF Inflows: Investors have shown strong interest, with fresh inflows of $534 million in the last week. Notably, BlackRock’s Bitcoin ETF has almost crossed the $20 billion mark in assets under management.
Legislative Support: U.S. Senator Cynthia Lummis has introduced a detailed plan for a national strategic Bitcoin reserve. The announcement was made during the Bitcoin 2024 conference in Nashville, amid growing pro-crypto sentiment.
High-Profile Endorsements: Former President Donald Trump expressed strong support for the crypto industry during his keynote speech at the Bitcoin 2024 conference. This endorsement, along with Lummis’ policy proposal, has further buoyed the market’s optimistic outlook.
Political Engagement: Reports have surfaced that Vice President Kamala Harris’ campaign team has reached out to top U.S. crypto companies in an effort to “reset relations.”

The confluence of Bitcoin’s price rally, strategic legislative proposals, and high-profile endorsements highlight a burgeoning bullish phase for the cryptocurrency market, setting the stage for potential significant developments in the near future.