The crypto market has been thrown into a euphoric state over the past 24 hours as the Bitcoin price skyrocketed once again. This time around, US investors have increased their dominance, suggesting they may be the drivers of this rally.
US Bitcoin trading volume surges to 44%
Trading volume by US investors fell to a low of 29% in January and uncertain regulatory headwinds did little to improve investor sentiment. However, that has changed as US investors took advantage of last week’s low prices as BTC fell below the $25,000 mark.
A report by Kaiko shows that US investors’ BTC trading volume has surged compared to January’s numbers, standing at 44% in June. This shift in Bitcoin trading volume suggests that investors are moving back towards BTC.
This explains the fact that bitcoin has staged an impressive rally while altcoins haven’t seen as much upside. So, it’s safe to say that the majority of this rally will be focused on BTC, suggesting it can continue to move higher from here.
The shift towards BTC versus altcoins also shows a lower risk appetite among crypto investors. This is because, while altcoins offer the opportunity for higher profits, they also come with a higher risk of loss. Therefore, Bitcoin is the top choice for investors looking to re-enter the market after a bear market but don’t want to take too many risks.
BTC stabilizes above $28,000
Bitcoin bulls are now targeting $30,000. Yesterday’s rally of close to $2,000 signals what could potentially be the start of another rally.
If this is the case, $40,000 is a conservative target for BTC price. The question remains whether this rally will rub off on altcoins, which are still struggling, especially since most of the new volume is currently concentrated in bitcoin.
Nonetheless, a surge to $40,000 would be a welcome development for the BTC market and could trigger the start of another massive bull run a year earlier than expected. Such a rally could be triggered by bullish news, such as the approval of a Bitcoin ETF or a favorable verdict in the case of Ripple-
At the time of writing, BTC has surpassed $29,300 and is up 8.95% in the past 24 hours. On the 7-day chart, the cryptocurrency is doing even better after surging 12.83%, bringing its total market cap back above $569 billion.
Picture Copyright: peshkova
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