Bitcoin Bulls Eye $70K After Return to $60K

This article originally appeared in First Mover, CoinDesk's daily newsletter, putting the latest moves in crypto markets in context.

Bitcoin traders are targeting a price of $70,000 in the short term after BTC rose above $66,000 during Monday night.

However, the second-largest cryptocurrency later slipped back to $65,000 during Tuesday morning, but it was still trading 2.2% higher than 24 hours ago.

“The rebound in Bitcoin price shows the market has a more optimistic outlook in the near-term macro environment,” shared Lucy Hu, a senior analyst at Metalpha, in a message to CoinDesk.

“The market was encouraged by Donald Trump’s vice president pick, which indicates a more crypto-friendly administration and policies.”

Bitcoin may also be rallying on Monday night due to optimism over less selling pressure in the long term as Mt. Gox repayments to creditors have commenced.

Bitcoin ETFs extended their seven-day winning run on Tuesday, recording $422.5 million of inflows, which was the largest single-day tally since June 5.

The lion’s share was enjoyed by BlackRock’s IBIT, which amassed over $260 million. The ETFs have collectively drawn in over $1 billion in just the last three days, underscoring the upward swing of confidence in bitcoin’s price prospects.

The ETFs’ seven-day inflow streak coincides with a surge of around 20% in BTC. Along with Donald Trump's improved presidential prospects, it’s likely that the supply overhang from sales by German state Saxony is now behind us and the crypto market is catching up with the sustained rally in technology stocks on Wall Street.

XRP jumped over 12% in the last 24 hours, outperforming its fellow crypto majors. The broader crypto market, as measured by the CoinDesk 20 Index, rose around 4.2%.

XRP's seven-day gains grew to about 40%, snapping a long run of performing worse than the rest of the digital asset market.

“The reversal of sentiment in crypto sparked a rise on steroids in the once-largest altcoin,” said Alex Kuptsikevich, a senior market analyst at FxPro.

Gains in the token started last week as CME and CF Benchmarks announced the debut of indices and reference rates for XRP.

The moves have formed a triangle pattern on long-term price charts, which some popular traders say could favor bullish action in the coming weeks.