Bitcoin on a rampage, highest levels since June 17

A fresh wave of volatility hit the crypto market, pushing up the price of Bitcoin by almost $3,000 within a day.

Bitcoin’s price increased by more than 14% this week, and on Friday it broke above a key trendline.  Right now, it’s trading at just over $66K. On-chain statistics indicate that Bitcoin is in an oversold position, suggesting that the market may be nearing a bottom.

BTC started to rise from $64,000 during early U.S. trading hours on Friday, it surpassed $67,000 for the first time since June 17. The price increase was accompanied by high trading volumes for BlackRock’s spot bitcoin ETF (IBIT). At the time of publication, the largest cryptocurrency asset was trading for just over $66.5K on the Binance exchange

Still,  this resurgence was triggered by the event many regard as one of America’s worst days. The assassination attempt on US presidential candidate Donald Trump served as the impetus for the market’s recovery. Many believe that the events in the past week have improved Trump’s chances of winning the US presidency.

Coinglass data shows that U.S. spot Bitcoin ETF inflows reached $84.80 million on Thursday, marking the fourth consecutive daily inflow. By this Thursday of this week, the total amount of these inflows had reached $861.50 million, suggesting growing investor confidence and maybe pointing to a 5.5% short-term increase in the price of Bitcoin.

It is essential to watch these ETFs’ net inflows to understand investor mood and market trends. These 11 U.S. spot Bitcoin ETFs owned $52.22 billion in total Bitcoin reserves as of Thursday.

Despite a modest uptick in the cryptocurrency market this week, favorable feelings about Bitcoin have drastically decreased, per Santiment’s data on the cryptocurrency funding rate and positive sentiment.

At the same time, many traders are opening short bets on sites like Binance in anticipation of a further drop in Bitcoin. The possibility of higher volatility in the bitcoin market is heightened by these reasons taken together.