Bitcoin rallies amid Biden’s withdrawal and Trump expectations

The new week brings fresh expectations for the cryptocurrency Bitcoin. Over the weekend, Bitcoin saw significant activity. On Friday, Bitcoin dropped to a low of $63,300 but surged past $68,000 on Sunday. This rise accelerated further following the announcement from U.S. President Biden that he would not be running in the November elections.

As of the morning of July 22, 2024, Bitcoin is trading near $67,800 in global markets, seeking equilibrium. This level corresponds to the 78.6% Fibonacci retracement of the decline from $72,000 to $53,500. Should Bitcoin break past $68,000, a target of $72,000 would be in sight again. Conversely, a retreat to the initial support at $65,000 could occur if it fails to sustain this level.

All eyes on Trump this week

Donald Trump, a well-known advocate for cryptocurrencies who aims to make the U.S. the “hub of Bitcoin,” has gained a significant advantage following Biden’s withdrawal from the race. Trump is scheduled to attend a cryptocurrency conference on Saturday, July 27, where he might declare Bitcoin as a strategic reserve asset. This announcement is expected to boost Bitcoin’s prestige and investor confidence, potentially impacting its price positively.

Key data from the Fed coming up

Additionally, on Friday, the U.S. Core Personal Consumption Expenditures (PCE) index will be released. The Federal Reserve closely monitors this data for potential rate cuts, with an expected monthly increase of 0.1%. Results in line with expectations would support a rate cut in September, which could further drive upward movement in crypto assets.

Bitcoin outlook for 2024

In addition to expectations surrounding the Fed and Trump, recent developments such as the conclusion of sales by German government institutions and the anticipation that Bitcoin distributions from the Japanese MT Gox exchange will not flood the market are bolstering hopes for Bitcoin.

$100,000 Bitcoin scenario

Analysts note a $20,000 range between the historic high of $73,800 and the recent low of $53,500, suggesting that surpassing the record high could initiate a journey towards $100,000. A report by crypto asset firm QCP Capital highlighted an increase in $100,000 call options for Bitcoin futures towards the end of 2024.