BTC price rallied as an improved regulatory outlook in the US and a series of improvements in the Bitcoin ecosystem altered investor expectations.
Bitcoin (BTC) gained 10% between July 25 and July 29, flirting with the $70,000 resistance level. Despite an initial failed attempt that drove Bitcoin’s price down to $68,000, investor sentiment has completely turned around from three weeks ago, when Bitcoin's price traded below $55,000.
Some market participants argue that the main driver for the recent rally has been political support from leading candidates in the United States presidential election. Others claim that Bitcoin’s demand arises from fear of an impending economic recession.
Solo Ceesay, CEO and co-founder of the Calaxy Web3 wallet, argues that the economy is in bad shape, as credit card defaults reach 12-year highs and new home inventories surpass the 2008 peak. While Solo’s article does not foresee the crisis hitting markets in the short term, it states that 2025 will be “bumpy,” as even “$100,000 still isn’t enough to comfortably raise, feed, and house a family in most places.”
