Bitcoin continues to show positive dynamics, climbing to $122,000 after stable support. It's important to note the policy changes and their impact on the market.
Price Dynamics of Bitcoin
On Monday morning, Bitcoin climbed above $122,000 after finding support at $120,080 on Sunday night. From this level, it gained about 3%, now within reach of the $123,218 peak set on July 14.
Technical indicators show that the bullish momentum remains in play. The Relative Strength Index (RSI) on the daily chart is at 65, well above the neutral 50 mark, while the Moving Average Convergence Divergence (MACD) signaled a bullish crossover on Monday.
These conditions point to the possibility of another leg up, although analysts caution that if the rally loses steam, Bitcoin could fall toward $116,000, a key daily support level.
Policy Changes and ETF Impact
On Thursday, President Donald Trump signed an executive order directing the Labor Department to work toward allowing cryptocurrencies, private equity, and other alternative assets in 401(k) retirement plans.
This change could open millions of retirement accounts to Bitcoin, potentially increasing buying activity. Analyst Fan noted that opening these accounts to higher-risk investments could bring in "significant" demand.
Institutional flows remain a strong driver as well. Spot Bitcoin ETFs recorded $253 million in net inflows over the past week, maintaining high demand despite some price consolidation after last month's peak.
Global Markets and Economic Factors
In U.S. equities, futures inched higher Sunday night. Dow Jones Industrial Average futures rose 56 points, or 0.1%, while S&P 500 and Nasdaq 100 futures both gained 0.1%. The uptick followed a strong close last week, with the Nasdaq Composite hitting a new high.
Despite these gains, some investors remain cautious. Jay Woods, chief global strategist at Freedom Capital Markets, stated that the market might be "more in a digestion phase" and could see sideways movement. This week’s inflation data will be under major focus, with the consumer price index (CPI) due Tuesday and the producer price index (PPI) on Thursday.
Woods emphasized that "the most important thing is the CPI data" for shaping expectations ahead of the Federal Reserve’s September meeting.
Thus, the current situation in the cryptocurrency market, including Bitcoin's rise and regulatory changes, sets the stage for positive movement. The coming days and weeks may significantly influence future trends and investor interest.
