Bitcoin Surpasses 71000 Mark A New Era Dawning
In breaking news, Bitcoin, the leading cryptocurrency, has successfully surged past the $71,000 level, a milestone it has struggled to reach in recent months. It is currently up by approximately 12% this month, aligning with the expectations of the “Uptober rally.” What factors are fueling this highly anticipated surge? Let’s delve deeper to find out.
Bitcoin is rapidly approaching its all-time high and is just shy of 3.5% from its peak of $73,750. The rally in Bitcoin has had a ripple effect on the entire cryptocurrency market, with the global market experiencing a 4.56% increase in the past day, reaching a total value of $2.4 trillion. Additionally, the market volume has surged by 89.41%, now standing at $100.99 billion. The 24-hour trading volume has skyrocketed by 100%, surpassing the $100 billion mark. The meme coin sector is also on the rise, with Dogecoin (DOGE) and Popcat (SOL) both seeing a 14% surge.
One potential explanation for the unexpected uptrend in Bitcoin is the significant trading activity from Binance whales, as highlighted by analytics platform CryptoQuant. In their analysis, CryptoQuant market watcher Mignolet observed that Binance whales have been actively participating in the market during Asian trading hours since October 14. Moreover, the increasing percentage of Bitcoin holdings among US-based institutions and major wallets is contributing to the growing optimism. Over the past few weeks, wallets holding over 100 BTC have increased, while retail holdings have slightly declined.
Another factor supporting the rally is the growing demand for direct Bitcoin exposure through Bitcoin ETFs in the US. These ETFs have attracted more than $3.5 billion in inflows this month, indicating a rising interest in gaining exposure to Bitcoin. Data from SoSoValue shows that BTC ETFs recorded a total net inflow of $479.35 million on October 28, with BlackRock’s ETF IBIT leading the way with a net inflow of $315.19 million alone.
Investors are also speculating on the potential outcomes of the upcoming US election. While prediction markets currently show Trump in the lead, as he has pledged to make the US the “crypto capital of the planet” if reelected, Harris takes a more moderate regulatory stance, differing from Biden’s more strict approach. The macroeconomic landscape in the US is expected to have an impact on Bitcoin’s price. Key data releases, such as Q3 GDP, job numbers, and inflation indicators like the Personal Consumption Expenditures (PCE) index, are seen as crucial to the Federal Reserve’s interest rate decision.
With significant events on the horizon, market sentiment is mixed. While some anticipate corrections in the market, the prevailing sentiment leans towards a continued bullish trajectory. Will this rally bring a fresh wave of optimism to the market? Stay tuned to find out.
Tags: Bitcoin