Bitcoin, the world's largest cryptocurrency is in a major wave, just shy of its July 29 high of $70,079. Investors and analysts alike have taken notice of this significant uptick and now want to know what's causing this bull trend to take off in the first place.
The price of Bitcoin (BTC) was $68,325.59 on October 21, 2024, as this article was being written. On October 15, the cryptocurrency breached the $66,000 level, surging 2.7%. Investors want to see how this BTC momentum continues and whether it can find support to break and close above $70,079, potentially taking the rally even beyond $73,777, Bitcoin's all-time high.
The growing hype around Donald Trump's possible return to the US presidency is being considered as one of the main reasons why Bitcoin price accelerated recently. According to various news agencies, increased volatility in currency markets goes hand in hand with Trump's improving odds in the coming election.
The introduction of spot Bitcoin ETFs was among the driving factors of Bitcoin's price soaring. In the past week alone these ETFs have received a $2.4 billion inflow. It essentially poured in institutional investment which has ushered in market confidence and liquidity, forming a strong fundament on which the price of Bitcoin could appreciate. With these ETFs, access to Bitcoin has become very easy.
Due to Bitcoin's dominance at 53.25%, overall market sentiment within the crypto space has been overwhelmingly positive. It means that crypto investors are highly preferring Bitcoin at all times, including times of optimism. In addition, the bullish momentum has been backed by the breaking of key resistance levels.
Bitcoin is the star performer here, but other cryptocurrencies also saw notable gains. Notably, the crypto market has been generally bullish, as Solana was at 6.47%.
Bitcoin's recent surge is also partly due to global economic factors. Bitcoin's appeal has risen in response to concerns about inflation, ongoing geopolitical strains and the burgeoning search for a source of value. As traditional financial systems struggle to keep up, more investors are turning to cryptocurrencies as a potential play for economic instability.
The combination of these factors – political speculation, institutional investment through ETFs, positive market sentiment, and broader economic considerations – has created a perfect storm for Bitcoin's price appreciation. Cryptocurrency is gaining more and more mainstream acceptance and institutional support, and it's in the eyes of more and more investors and financial institutions as the new legitimate asset class.
Investors will be watching closely to see if Bitcoin can break through key resistance levels to set other all-time highs. If Bitcoin can solidify itself as a long-term store of value and investment, a phenomenon that will be heavily dependent on the outcomes of the coming weeks and months, then this bullish trend must be able to hold.
Political speculation and institutional adoption have fueled the rally that saw Bitcoin reach $70,079 today. The global crypto market is expanding and maturing. Bitcoin's performance will likely reflect the health and direction of the digital asset market.