Bitcoin breached the $71,000 level on Tuesday morning, sending other major altcoins into an upward trend a week before the US elections. According to CoinGecko tracking, Bitcoin reached $71,075 after falling last week due to circulating rumors about a possible Tether investigation and the ongoing conflict in the Middle East.
Experts and industry observers say Bitcoin’s recent breakout is linked to increased inflows into Bitcoin ETFs and excitement surrounding the events of November 4 US presidential elections favoring the cryptocurrency industry. Despite Bitcoin’s erratic price movements over the past few days, there is currently bullish sentiment on Bitcoin.
Source: Coingecko
Bullish run from Bitcoin?
Last week was a challenging time for cryptocurrency holders and the market as Bitcoin fell below $66,000, but immediately rebounded and consolidated in the $67,000 to $68,000 range over the weekend.
Bitcoin then exploded and reached $71,075, its best performance in the last four months. According to CoinGecko, Bitcoin’s latest price move on Tuesday is supported by $51 billion in trading volume, which is double the amount generated on Monday.
Bitcoin market cap currently at $1.4 trillion. Chart: TradingView.com
Observers such as Peter Brandt have said that Bitcoin’s recent price action reflects a up-to-date phase of post-halving growth. In a Twitter post, the veteran trader shared that Bitcoin has completed its “inverted expanding pyramid” and that the next steps are critical. Brandt further explained that this could be Bitcoin’s post-halving trend.
BTC whale trades and ETF inflows are driving the market
The recent surge in Bitcoin prices is attributed to the increased number of transactions Bitcoin whales and inflows into ETFs. According to CryptoQuant’s Mignolet, the recent purchases can be attributed to whales on Binance, who appear to be net buyers of Bitcoin during Asian trading hours.
Source: Investors from Farside
Additionally, Bitcoin ETF trading primarily contributed to higher than usual trading volumes. These funds added a net inflow of over 47,000 Bitcoins in two weeks. Apart from Bitcoin, other major altcoins do as well joined the wave. For example, Dogecoin rose 15% due to Trump’s popularity. Next is Shiba Inu (SHIB), which jumped 8%, Ether (ETH) 4.9%, and Cardano’s ADA improved 3%.
Image: Zerocap
Bigger highs next?
For many seasoned traders, Tuesday’s huge jump sets the tone ahead of the November U.S. elections. Cryptocurrency traders and supporters expect Bitcoin to maintain its gains and even reach up-to-date highs, regardless of the outcome of the presidential election.
Traders have long favored and predicted Donald Trump to win the election. For many, Trump’s victory is a catalyst for Bitcoin’s growth because it boasts several pro-crypto policies. It also helps that Trump is gaining the support of Elon Musk, a vocal supporter of Bitcoin and blockchain technology. Democrats, on the other hand, have not developed a specific policy, but they plan to introduce regulations in the industry.
Even financial analysts are sharing their opinions and forecasts ahead of the US elections. According to some analysts from Standard Chartered, Bitcoin could reach $73,000 by November 5. If Trump wins, they predict the price will reach $80,000 or even $125,000 by the end of the year, especially if Republicans win Congress.
Featured image from Dall-E, chart from TradingView
