Written by: 1912212.eth, Foresight News
BTC has not disappointed expectations. Around 6 AM this morning, the price once again broke through $70,000, briefly surpassing $71,000, with a 24-hour increase of over 4%, now hovering around $71,000. ETH, which had left the Twitter community almost pessimistic, rebounded above $2,600 after dipping to $2,382. Some altcoins, after a pullback in the previous days, have finally welcomed a rebound. Dogecoin surged 17% due to Musk's endorsement, now surpassing $0.16.
In terms of contract data, according to Coinglass, $173 million was liquidated in the past 24 hours, including $69.7824 million in long positions and $103 million in short positions. The market experienced both long and short liquidations.
What factors are driving the market's upward trend?
The Federal Reserve is about to cut interest rates again.
The Federal Reserve will hold a policy meeting on November 6-7. Currently, the market is almost certain that the central bank will cut interest rates by 25 basis points at that time. According to the Chicago Mercantile Exchange's FedWatch Tool, traders currently expect a 98.4% probability of a 25 basis point cut in November, a 1.6% probability of no cut, and a 0% probability of a 50 basis point cut.
The Federal Reserve's continued rate cuts will inject more liquidity into the global market and benefit risk assets. With increasing liquidity, market sentiment has clearly improved.
Microsoft plans to purchase Bitcoin.
More and more large companies are considering holding Bitcoin as a strategic reserve.
On Thursday, Microsoft filed Form A with the U.S. Securities and Exchange Commission, listing issues to be discussed at the next shareholder meeting. One proposal suggests that the tech company should study Bitcoin as a hedge against inflation and other macroeconomic impacts.
Documents show that the board recommends shareholders vote against the proposal, stating that Microsoft has 'carefully considered this issue.' The statement notes: 'Past assessments have included Bitcoin and other cryptocurrencies as options. Microsoft will continue to monitor trends and developments related to cryptocurrencies to inform future decisions. As the proposal itself points out, volatility is a consideration in evaluating cryptocurrency investments, which require stable and predictable investments for corporate financial applications to ensure liquidity and operational funding. Microsoft has established robust and appropriate processes to manage and diversify its corporate finances for the long-term benefit of shareholders; the request for public evaluation is unreasonable.'
Microsoft's major shareholders include Vanguard, BlackRock, and State Street.
BTC spot ETFs continue to see inflows.
Bitcoin spot ETF data shows that since the beginning of this month, the purchasing funds have been quite strong. Only 7 days saw net outflows, while the remaining 12 days experienced net inflows, with a significant amount inflowing. On October 14, the single-day net inflow exceeded $555.86 million.
Currently, the total net inflow of Bitcoin spot ETFs in the U.S. has reached $21.93 billion, with on-chain total holdings surpassing 1 million BTC. Additionally, according to data disclosed by CryptoQuant CEO Ki Young Ju, the institutional holding ratio of U.S. Bitcoin spot ETFs is about 20%, with asset management companies holding approximately 193,000 BTC.
Bitcoin has experienced a golden cross.
A few days ago, market analyst Omkar Godbole stated that the 50-day simple moving average (SMA) of Bitcoin has begun to rise and may exceed the 200-day SMA in a few days, confirming the so-called 'golden cross.'
This model indicates that short-term price momentum exceeds long-term momentum, potentially evolving into a bull market. Indicators based on moving averages are often criticized as lagging signals, which may lead traders to be on the wrong side of the market. While this view is generally correct, golden crosses have indeed predicted major bull markets.
Traders who held Bitcoin for a year after the first and second golden crosses, as well as the golden cross in May 2020, will see returns reaching triple-digit percentages. After the golden cross on October 30, 2023, Bitcoin's value doubled, reaching a new all-time high of over $73,000.
The market trend once again confirms that its upward momentum may continue.
The U.S. presidential election is approaching.
Generally speaking, the cryptocurrency market tends to see good increases around the U.S. elections. After the results of the last U.S. presidential election were announced, there was even a significant rise, although there were declines in the two days before and after.
Furthermore, for the cryptocurrency market, whether Harris or Trump is in power, in the long term, it is favorable. Therefore, some funds choose to continue betting on the subsequent market.
