Bitcoin has surged to as high as $66,000 in the past 24 hours, snapping out of weeks of stagnation as the broader cryptocurrency market shows signs of recovery.
October is traditionally a strong month for investors, with gains of up to 60% and average returns of 22%. However, the market has remained stable in recent weeks, leading to a more cautious outlook among investors.
However, yesterdayâs bullish move has reignited optimism surrounding the âUptoberâ narrative as market analysts highlight why the flagship assetâs rally could continue.
According to CryptoSlate data, the price of Bitcoin has dropped slightly to $65,632 as of press time.
US Election
A major factor driving this new momentum is the growing perception that both leading U.S. presidential candidatesâVice President Kamala Harris and former President Donald Trumpâare pro-crypto. This belief suggests that the crypto market could benefit regardless of the election outcome.
Vice President Harris recently announced plans to establish a regulatory framework for digital assets, aimed at protecting retail investors while promoting economic inclusion, especially in minority communities.
Trump, on the other hand, has positioned himself as a strong supporter of Bitcoin and cryptocurrencies, making pro-crypto statements throughout his campaign.
Blockchain-based prediction platform Polymarket shows that Trump has a 56.2% chance of winning the upcoming election, while Harris has just 43.4%.
Despite the uncertainty of the election, leading organizations like Galaxy Digital believe that Bitcoin will not be affected regardless of who wins.
BlackRock CEO Larry Fink echoed this sentiment, stating that Bitcoin will soar regardless of the election outcome. He stressed that Bitcoinâs growth is driven more by liquidity and transparency than by regulation or political leadership.
Other key drivers
Other potential drivers behind Bitcoin's recent performance include shifts in market sentiment and global economic factors.
In an October 15 note, trading firm QCP Capital noted that disappointment with Chinaâs latest economic stimulus package may have prompted some investors to redirect money from Chinese stocks to Bitcoin.
Chinaâs efforts to revive its economy have been ineffective, raising doubts about the effectiveness of its anti-deflationary policies. This uncertainty has drawn more attention to Bitcoin as an alternative.
Additionally, the delay in paying creditors of the Mt. Gox exchange by another year has eased concerns about the sudden influx of Bitcoin into the market.
Geopolitical risks also appear to be easing, with reports that Israel may delay targeting Iranâs crude oil and nuclear infrastructure. This easing of tensions could bring further stability to global markets.
QCP Capital also noted that the current lack of major inflation or labor data will allow the crypto market to rally at a lower risk premium.
