Bitcoin rallies and sentiment peaks as major pro-crypto moves emerge

Bitcoin’s recent 20% surge over the past three weeks has reinvigorated bullish sentiments among traders, according to data from Santiment. 

This sentiment shift marks the most positive outlook on Bitcoin (BTC) since March 2023, with the term “Bitcoin” being discussed more favorably on social media than at any point in the last 16 months.

🤑 Bitcoin's +20% 3-week price rally has left traders feeling a whole lot more bullish than they were at the beginning of the month. The ratio of positive vs. negative comments toward BTC has launched to its highest level since March, 2023 as an all-time high is back on radars. pic.twitter.com/sDbsAK9qCg

— Santiment (@santimentfeed) July 28, 2024

Santiment’s weighted sentiment index, which gauges the ratio of positive to negative comments on X, has soared to a 16-month high. The price rally has seen Bitcoin surpass the $67,000 mark, reflecting a 6.22% increase since July 25, per data from crypto.news.

Bitcoin’s price touched $69,404 on July 28, its highest since June 12, although it’s currently trading around $67,770.

This bullish turn follows cooler-than-expected inflation data, suggesting potential multiple interest rate cuts by the U.S. Federal Reserve this year. 

The leading cryptocurrency has climbed over 23% from its local bottom of $53,550 on July 5, spurred by strong dip-buying from Bitcoin ETF investors. 

These products have continued their impressive streak, with fresh inflows of $534 million in the last week. Notably, BlackRock’s Bitcoin ETF has almost crossed the $20 billion mark in assets under management.

Adding to the positive sentiment, U.S. Senator Cynthia Lummis has introduced a detailed plan for a national strategic Bitcoin reserve. 

The announcement, made on July 27 during the Bitcoin 2024 conference in Nashville, came amid growing pro-crypto sentiment. Lummis announced the Bitcoin reserve legislation directly after President Donald Trump delivered a keynote at the event. Trump expressed robust support for the crypto industry during his speech, announcing the Bitcoin reserve toward the end. Trump’s overall endorsement and Lummis’ policy proposal have further buoyed the market’s optimistic outlook.

In more potentially bullish news from Washington, yesterday, reports surfaced that Vice President Kamala Harris’ campaign team had reached out to top U.S. crypto companies in an effort to “reset relations.”

The confluence of Bitcoin’s price rally, strategic legislative proposals, and high-profile endorsements highlight a burgeoning bullish phase for the cryptocurrency market, setting the stage for potential significant developments in the near future.