In a remarkable turn of events, Bitcoin surged past the $71,000 mark on Tuesday morning, spearheading a bullish wave among major altcoins. This surge comes just a week before the US elections, a period marked by heightened anticipation in the crypto industry. According to the latest data from CoinGecko, Bitcoin reached an impressive $71,075, recovering from last week’s downturn caused by rumors of a potential Tether investigation and the ongoing geopolitical tensions in the Middle East.
Factors Fueling Bitcoin’s Breakout
Industry experts suggest that Bitcoin’s recent breakout is driven by increased investments in Bitcoin ETFs and the growing excitement surrounding the upcoming US presidential elections on November 4th. Despite Bitcoin’s volatility in recent days, the cryptocurrency is currently buoyed by a prevailing bullish sentiment.
Is a Bullish Run Ahead for Bitcoin?
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Last week’s market volatility saw Bitcoin dip below $66,000, causing concern among investors. However, Bitcoin demonstrated resilience, quickly rebounding to stabilize within the $67,000 to $68,000 range over the weekend. The latest surge to $71,075 marks Bitcoin’s best performance in four months. CoinGecko reports that this price movement on Tuesday was supported by a substantial $51 billion in trading volume, doubling Monday’s figures.
Bitcoin’s market capitalization now stands at an impressive $1.4 trillion. According to seasoned trader Peter Brandt, Bitcoin’s latest price action may signify the onset of a new bullish phase following its halving event. In a recent tweet, Brandt highlighted that Bitcoin has completed its “inverted expanding pyramid,” suggesting that the subsequent movements will be pivotal for its trajectory.
Impact of BTC Whales and ETF Inflows on the Market
The recent surge in Bitcoin’s price is attributed to increased trading activity from Bitcoin whales and substantial inflows into ETFs. CryptoQuant’s analyst, Mignolet, notes that Binance whales have been significant net buyers of Bitcoin during Asian trading hours, contributing to the upward momentum.
Additionally, the trading of Bitcoin ETFs has significantly boosted trading volumes, with these funds experiencing a net inflow of over 47,000 Bitcoins in the past two weeks. This bullish wave has also lifted other major altcoins. For instance, Dogecoin saw a notable 15% increase, attributed to former President Donald Trump’s popularity, while Shiba Inu (SHIB) surged by 8%, Ether (ETH) by 4.9%, and Cardano’s ADA by 3%.
Anticipating Bigger Highs
With the US elections looming, Tuesday’s dramatic price jump has set a positive tone among traders and crypto enthusiasts. There is a general expectation that Bitcoin will continue to maintain its gains or possibly achieve new highs, regardless of the election outcome.
Many traders are betting on a Trump victory, which is perceived as a bullish catalyst for Bitcoin due to his favorable stance toward cryptocurrency policies. Trump’s endorsement by Elon Musk, a prominent advocate of Bitcoin and blockchain technology, further fuels this optimism. Conversely, the Democrats have yet to outline specific crypto policies, although they plan to introduce regulations in the sector.
Financial analysts are also weighing in with their forecasts as the elections approach. Analysts at Standard Chartered project that Bitcoin could reach $73,000 by November 5th. Should Trump secure a win, they predict the price could soar to $80,000 or even reach $125,000 by year’s end, especially if Republicans gain control of Congress.
As the crypto market braces for the upcoming elections, all eyes remain on Bitcoin’s performance, with anticipation building around its potential to achieve new milestones.
