Bitcoin's price touches 4-month high of $71,310: What's fueling rally?
Bitcoin's value has soared beyond the $71,000 mark for the first time since June 2024. The digital currency saw a more than 2% increase, hitting a high of $71,310. The rise is attributed to strong ETF inflows, and positive market sentiment ahead of the US presidential election. Other cryptocurrencies such as Ether and Dogecoin also gained around 4%.
Trump's support for digital assets influences rise
The spike in Bitcoin's value is frequently linked to Donald Trump's campaign, owing to his vocal support for digital assets. Trump has vowed to make the US the global center for cryptocurrencies. Currently leading in prediction markets, his position is in stark contrast to Democratic candidate Vice President Kamala Harris, who favors a regulatory framework for digital assets.
Bitcoin's rally boosts other major cryptocurrencies
The Bitcoin rally has also benefited other major coins such as Ethereum, BNB, Solana, and especially Dogecoin, which jumped 15% after an Elon Musk tweet. Edul Patel, CEO of Mudrex said, "BTC's resistance stands at $71,400 with support at $67,900." Options traders are betting that Bitcoin could reach $80,000 by the end of November.
US spot-Bitcoin ETFs witness significant net inflows
US spot-Bitcoin ETFs have seen some $3.3 billion in net inflows this October, adding to the momentum of Bitcoin's rise. Tony Sycamore, a market analyst at IG Australia Pty, said Bitcoin seems to be "pricing in a Donald Trump election victory." He added that for confidence to grow about crossing its March record of $73,798, Bitcoin needs to hold above $70,000 consistently.
Bitcoin's value rises despite reduced bets on interest rate cuts
Despite lowered bets on Federal Reserve interest rate cuts and increased scrutiny on the stablecoin Tether, Bitcoin has seen a whopping 70% surge in 2024. This resilience only goes on to show the digital currency's ability to withstand market pressures. The recent stock market rally has also contributed to Bitcoin's rise, further highlighting its strong performance this year.
