Recent price increases in Bitcoin are driven by a combination of macroeconomic factors and increased institutional interest in cryptocurrencies.
Macroeconomic Signals and Trump's Influence
On July 9, Donald Trump made remarks advocating for the "biggest rate cut in history," which triggered a 2.1% jump in Bitcoin's price within hours. Traders interpreted these comments as bullish for liquidity-sensitive assets, leading to capital flowing back into risk-on markets. Bitcoin's 30-day correlation with Nasdaq surged to +0.74, highlighting the asset's sensitivity to macroeconomic signals.
Technical Analysis of Bitcoin Prices
On the technical side, Bitcoin closed above its 7-day simple moving average at $109,103 and breached the Fibonacci 127.2% extension level near $115,635. Trading volume rose over 52%, confirming strong buying momentum. Indicators such as the MACD histogram point to sustained upside potential without immediate overbought conditions.
Institutional Demand and the Market
Institutional demand continued to pour in through spot Bitcoin ETFs, with $450 million in net inflows recorded on the same day. These inflows helped absorb the profit-taking pressure that followed Bitcoin’s push to new all-time highs. Bitcoin dominance rose to 64%, reflecting a broader risk appetite across the crypto market.
In the current environment, Bitcoin is receiving significant attention due to macroeconomic signals and active demand from institutional investors. If Bitcoin holds above $113,000, traders may shift their focus towards altcoins.
