Bitcoin (BTC) Price Rallies 13% in a Week as Market Sentiment Shifts from Fear to Neutral

Analysts and investors seem to be breathing a sigh of relief as key events propelled Bitcoin to more than 13% growth within a week.

Bitcoin price soared by more than 13% within a week as key events unfolded, including a failed assassination attempt on former President Donald Trump and fresh hopes for an interest rate cut this year.

As of Friday morning, the world’s largest cryptocurrency by market capitalization recovered to the $62.7K range, showing an over 4.5% increase in its value within the 24-hour timeframe. BTC’s price hovered around the mid-$50K support level earlier this week following a massive dump of the German Government’s BTC holdings and the looming sell-off of Mt. Gox’s crypto supply.

But the lingering fear in the market provided a favorable entry point for investors to buy the dip as Bitcoin showed a strong hold at the crucial support level.

A recent update in the Crypto Fear & Greed Index also indicated a transition of market sentiment from a state of uncertainty in the past week to a mixed feeling this Monday. The multifactorial crypto market sentiment analysis tool went from Saturday’s 25 “Fear” rating to 33 yesterday before its transformation to a 52 “Neutral” today.

Meanwhile, the steep decline in US inflation data fueled an optimistic outlook for the American economy before the end of last week. According to the Consumer Price Index (CPI) report of the US Bureau of Labor Statistics covering the month of June, core inflation fell to an unadjusted rate of 3% on a year-over-year (YoY) basis.

The new data showed a major development compared to May’s 3.3% rate and was better than the earlier expectations of analysts, which stood at 3.1%. The latest inflation figures have fueled investors’ hopes for an eventual interest rate cut this year, which also bodes well for Bitcoin as it helps ease the selling pressure.

Interest rates have stagnated at 5.25%-5.5% since exactly a year ago. From then on, US Federal Reserve Chair Jerome Powell made it clear that they would not cut rates down until they had confidence that inflation numbers were on the way to a sustainable level of 2%.

However, the most important story for Bitcoin this week so far lies within the events leading to the 2024 US Presidential Election. The failed assassination attempt of former President Donald Trump in Pennsylvania has apparently boosted his campaign for another shot at the White House.

President Joe Biden and his fellow Democrats were quick to condemn the attack on the Republicans’ figurehead, but all efforts to quell the masses have appeared futile. Trump’s blood-smeared but defiant image with his fist held up high has already accidentally created an iconic moment in the current political race.

A win for Trump could mean a victory for Bitcoin and crypto. This is at least the sentiment in the industry as the Republican candidate has been showing strong support for the digital assets sector in his current campaign. The former president’s financial disclosure also revealed his significant investments in cryptocurrencies, which has made the crypto community more receptive to his rhetorics.

Expect further price movements in Bitcoin as Trump heads to the 2024 Bitcoin conference in Tennessee on the 27th.

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