The crypto market has been thrown into a euphoric state over the last 24 hours as the price of Bitcoin has surged once more. In its latest run, the digital asset was able to retest the $29,000 resistance before being rejected but continues to hold up nicely above $28,000. This time around, dominance from US investors has been on the rise, suggesting that they may be the leaders of this rally.
US Bitcoin Trading Volume Rises To 44%
The trading volume from US investors fell to a low 29% back in January and the uncertain regulatory headwinds did not much help investor sentiment. However, this has quickly changed with US investors taking advantage of the low prices presented last week when BTC fell below the $25,000 resistance.
A report from Kaiko shows that US investor BTC trading volume has risen sharply compared to its January figures to 44% in June. This shift in Bitcoin trading volume suggests that investors are moving back toward BTC and leaving altcoins behind once more.
BTC volume on US exchanges rise to 44% | Source: Kaiko
This explains the fact that while Bitcoin has been on an impressive rally, altcoins have not seen as much upside. Thus, it is safe to say that most of this rally will likely be focused on BTC, indicating the potential for further upside from here.
A move toward BTC compared to altcoins also shows a lower risk appetite among crypto investors. This is because while altcoins provide an opportunity for higher gains, it also comes with a higher risk of losses Hence, making Bitcoin the choice for investors when getting back into the market from a bear, but not wanting to take too many risks.
BTC Steadies Above $28,000
Bitcoin bulls have now set their sights on the $30,000 price level after adding $2,000 to the digital asset’s value in the last 48 hours. This recovery signals what could possibly be the start of another 100% run similar to the one that was witnessed in the first quarter of 2023.
BTC reclaims $28,000 support | Source: BTCUSD on TradingView.com
If this happens, then $40,000 is a conservative stop point for the BTC price. The question then remains if this rally will rub off on altcoins which are still struggling, especially since the majority of the new volume is currently focused on Bitcoin.
Nevertheless, a rise to $40,000 would be a welcome development for the BTC market and could trigger the start of another massive bull rally, a year earlier than expected.
At the time of writing, BTC has broken above $28,900, displaying 8.23% gains in the last 24 hours. The cryptocurrency is performing even better on the 7-day chart after rising 11.34% and bringing its total market cap back above $561 billion.