Bitcoin is displaying fresh signs of strength, recovering towards the $113,000 (PKR 31.9 crores). The rebound follows a volatile month that saw the cryptocurrency dip below $109,000 (PKR 30.9 crores), but the recent surge signals renewed investor confidence. Market analysts are pointing to a mix of institutional maneuvering and political developments as the primary catalysts driving Bitcoin’s latest move.
Factors Fueling Bitcoin’s Rally
1. Institutional Investment Surges
The most significant driver is the dramatic shift in institutional capital, particularly from major players like BlackRock.
According to CoinDesk, BlackRock’s spot Bitcoin ETF holdings have now surpassed those of major exchanges like Coinbase and Binance, making it the largest Bitcoin custodian. This indicates a flow of money from crypto exchanges to more regulated ETFs, offering easier exposure for a wider range of investors, including hedge and pension funds.
2. Trump’s Crypto Posture
Political shifts also appear to be impacting market sentiment. While the broader Trump administration’s policy approach draws scrutiny, the market is responding positively to moves within the Trump family’s crypto ventures.
A new company, American Bitcoin, backed by Donald Trump’s sons, is set to go public on the Nasdaq in early September. The family’s involvement, coupled with President Trump’s public criticism of Federal Reserve policy and demand for lower interest rates, is interpreted by some market watchers as a bullish signal for risk assets.
3. Positive Technical Indicators
On the technical front, Bitcoin’s recovery is supported by improving momentum. Analysts at Mitrade note that Bitcoin’s jump from around $108K (PKR 30.6 crores) to above $113K (PKR 31.9 crores) is a significant show of strength.
The cryptocurrency has reclaimed the 100 EMA on the daily chart, a technical indicator that previously preceded new all-time highs. For the rally to continue, Bitcoin needs to hold above key moving averages and break past near-term resistance around $117,390 (PKR 33.2 crores).
Market Volatility and Future Outlook
While August saw Bitcoin hit new highs above $124,000 (PKR 35.1 crores), it also experienced a correction, with its value temporarily dropping by approximately 10%. As the month draws to a close, Bitcoin is attempting to close the monthly decline and end a four-month winning streak.
Looking ahead, predictions remain varied. Some bullish long-term forecasts from sources like Binance suggest Bitcoin could continue its upward trend into 2026 and 2027.
However, other analysts urge caution, with some models suggesting a potentially bearish trend in the long run.