Bitcoin has surpassed $71,000 for the first time since June, driven by heightened interest in cryptocurrency ETFs and market speculation surrounding the upcoming U.S. election. The largest digital currency reached a peak of $71,500 on October 28 before stabilizing around $70,870 on Tuesday morning in London.
Crypto Market Rides Bullish Wave
Bitcoin’s rise triggered gains across the broader crypto market. Ether and Dogecoin also climbed, with analysts suggesting that Bitcoin is primed to challenge new all-time highs if momentum persists.
Key Drivers: ETFs and U.S. Election
Several factors are powering Bitcoin’s recent rally:
- ETF Inflows: The launch and popularity of Bitcoin-focused ETFs have renewed investor enthusiasm.
- Election Speculation: Market sentiment indicates a Trump victory could boost Bitcoin, while a Harris win may cause a temporary retreat to $60,000-$65,000.
- Halving Cycle Impact: Bitcoin’s rally aligns with its historical pattern of gains occurring about six months after a halving event.
Analysts Warn of Volatility
Experts are cautious despite the bullish trend. Tim Enneking, managing partner at Psalion, noted, “While Bitcoin’s upward move is encouraging, the market remains fragile with the election and ETF-related dynamics creating uncertainty.” He added that external factors, such as regulatory developments, could still disrupt the rally.
Comparing Cycles and Market Potential
Crypto influencer Wendy O compared Bitcoin’s current rally to its 2020 performance, noting that if $74,000 resistance is broken, the cryptocurrency could enter price discovery mode. She highlighted Bitcoin’s cyclical nature, driven by the halving and changing market fundamentals, like the recent ETF approvals.
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