Bitcoin and most altcoins rose this week, with the former surging to over $110,000 for the first time in weeks. It has jumped by over 50% from its lowest level in April this year.
This jump has triggered more gains among altcoins like Fartcoin, AAVE, Dogwifhat, and Uniswap. As a result, the market capitalization of all coins has jumped to over $3.4 trillion, while the 24-hour volume soared by 38% to $130 billion. Let’s explore the top three reasons why Bitcoin and altcoins are going up.
SEC crypto roundtable
The first main reason why Bitcoin and other crypto prices are going up is that the Securities and Exchange Commission (SEC) held the first decentralized finance (DeFi) roundtable featuring the biggest players in the industry.
In a statement, Paul Atkins noted that the SEC supported the industry and the role of self-custody. He also criticized Gary Gensler, the previous regime of Gary Gensler, which focused on lawsuits against companies like Uniswap, Kraken, Coinbase, and Immutable.
Analysts believe Atkins will continue supporting the industry, including filing fewer lawsuits and approving ETFs on crypto coins like XRP, Polkadot, Stellar, Hedera Hashgraph, and Tron.
SEC Chair Paul Atkins announces that DeFi platforms will be exempt from regulatory restrictions.
He’s also stated that “The right to have self custody of one’s private property is a foundational American value that should not disappear when one logs on to the internet.”
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US and China trade talks
Bitcoin and other altoins are going up because of the ongoing trade talks between the United States and China in London. The two sides are attempting to lower tensions that have been going on for a while.
Media reports suggest that China will likely offer to ship are earth materials to the United States in exchange for access to semiconductors. There are also signs that the two countries will work to resolve the outstanding issues on trade.
Bitcoin, altcoins, and other assets like stocks do well when there is little tension in the financial market.
Trump and Elon Musk potential truce
Bitcoin and altcoins are going up because of the potential truce between Elon Musk and Donald Trump. According to USA Today, Musk has been attempting to get back into Trump’s good graces on X.
Analysts believe that Musk has a lot to lose if the feud goes on since SpaceX, his company, is one of the top government contractors in the US. As such, Trump may start canceling some of the projects if the feud continues.
In an NBC interview, Trump said he had no desire to reconcile with Musk. However, a common phrase is that Trump Always Chickens Out (TACO), meaning that he may open the door back to Musk.
A reconciliation may be good for Bitcoin and altcoins because Trump and Musk are popular in the crypto community.
Bitcoin price has bullish technicals
The other reason why Bitcoin and altcoins are going up is that the former has strong technicals that may push it higher in the long term.
As the chart above shows, the token has remained above the 50-day and 100-day Exponential Moving Averages (EMA), a sign that bulls are in control.
Bitcoin has also formed a cup-and-handle pattern. It has completed the cup section and is now about to complete the handle part. This cup is 30% deep, meaning that the potential target for the coin is about $142,000. Such a move will likely lead to more gains among altcoins.
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