Here’s a look at how Elon Musk, and Biden’s departure from elections can propel Bitcoin close to new all-time highs.
- President Biden’s recently announced exit from politics feeds into the bullish speculation. Elon Musk’s laser eyes in his X profile attracts crypto hype.
Bitcoin [BTC] pushed higher over the weekend aided by an unexpected turn of events. This includes a major announcement regarding Joe Biden’s presidency and Elon Musk potentially hinting at his current stance on crypto.
The Bitcoin community took on a more bullish stance following the announcement that Joe Biden would not pursue a second term.
The current acting U.S president has not been particularly keen on supporting crypto. A contrast to Donald Trump who recently revealed that he is pro-Bitcoin. The announcement signaled a higher probability of Trump regaining presidency, hence the favorable BTC sentiment.
Meanwhile, another key figure may have influenced Bitcoin’s bullish expectations. Elon Musk recently changed his X profile to include laser eyes.
Reactions and commentary on the matter suggests that the market is translating Elon Musk’s laser eyes as a sign that he is bullish.
Bitcoin approaches its top range
Prior to Bitcoin’s extended upside over the last week or so, the bullish sentiment had faded as the cryptocurrency demonstrated a double top. This outcome was likened to the 2021 top which resulted in a major price correction.
However, Bitcoin managed to push above $68,000 during the weekend. Why was this important?
The $68,000 price range means Bitcoin requires less than a 10% move to retest its previous high. In other words, the likelihood of pushing into a new ATH is now more probable.
This may also dispel double top concerns about the bull run potentially being over. Bitcoin traded at $67,269 at press time.
Exchange data points out the state of demand
We also made noteworthy observations that align with the political environment, as well as the overall state of demand in the market. Our assessment of Bitcoin demand revealed that exchange reserves extended their downside.
Source: CryptoQuant
The last time that exchange reserves were this low was in February 2018. It speaks volumes about the growing demand for Bitcoin. In addition, we witnessed that the recent recovery also encouraged a spike in Bitcoin miner reserves.
Miner reserves previously demonstrated outflows. Bitcoin’s halving in April meant that miners would make fewer profits, and some would find themselves not able to break even, hence forced selling.
The recent spike in miner reserves indicates that miners are more willing to hold on to their coins in anticipation for potentially higher prices.
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