The price of Bitcoin saw a significant recovery ahead of former U.S. President Donald Trump’s speech at the Bitcoin Conference 2024 in Nashville, Tennessee, scheduled for Saturday, July 27.
However, analysts warn that this price surge might be “impulsive” and could be at risk of further decline.
High Expectations for BTC Price Increase
Bitcoin’s price rebounded from most of the previous week’s losses and is currently trading around $67,000, up 4.75% in the last 24 hours, according to CoinMarketCap. Markus Thielen, CEO of 10x Research, noted in his analyst report on July 25 that futures traders are refraining from taking short positions on Bitcoin due to high expectations that Trump might announce a strategic Bitcoin reserve plan at the conference if he is elected U.S. President in November.
“If Trump announces a strategic reserve, Bitcoin’s price will surge,” Thielen told Cointelegraph.
Thielen also mentioned that the U.S. Treasury Department holds gold reserves worth $600 billion, while the government has seized Bitcoin worth $15 billion.
“Trump could hint at his intention to increase this ratio to about 10% of the gold reserves or more,” added Thielen.
He predicts that even a mention of this could make the market respond quickly without having to wait until November for Trump’s election as president.
Trump has been linked to optimistic views of the crypto market after openly declaring policy plans that support the industry. However, with recent selling pressure, analysts caution that Bitcoin’s current price movement may not be sustainable.
Potential for BTC Price Correction
In a post on July 26, popular trader Crypto Ed warned that the surge in Bitcoin’s price above $67,000 appeared “impulsive.”
“This surge is stronger than I expected yesterday, looks impulsive,” he wrote.
He initially anticipated a correction towards $62,000, but the strength of the current surge indicates that the market might be heading for new highs. Crypto Ed also noted that if the market drops to $63,500, it would negate the latest bullish signals.
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