Five main reasons jointly driving BTC to break through $71,000, new highs are within reach, and a big market movement is on the horizon!

1. Impact of Federal Reserve interest rate cut expectations

There is a high possibility of another interest rate cut during the policy meeting on November 6-7, which will further ease liquidity. A rate cut will directly enhance market liquidity and provide support to the market.

2. Increased attention to BTC from US tech giants

Currently, major internet companies are increasingly focused on BTC. Although Microsoft's proposal regarding BTC at the shareholders' meeting was not approved, it still reflects the company's interest in cryptocurrency at the corporate level.

3. Continued inflow into BTC spot ETFs, with holdings surpassing 1 million BTC, accounting for 5.26% of the current BTC supply. On-chain holding value has reached about $69.1 billion, with data showing a net inflow of approximately 420,700 BTC since the launch of the US spot BTC ETF, as traders prepare for potential positive factors for cryptocurrency in November.

4. Upcoming US elections

Many market participants believe that Trump's victory is more likely to drive the market up, as his potential policies are relatively friendly and supportive of cryptocurrency. Historically, the period around elections has often favored the performance of the cryptocurrency market. Data shows that Trump currently leads Harris by a significant margin of 66.1% to 33.9%.

5. Steepening US Treasury yields, optimistic US economic outlook

Currently, the yield spread between 2-year and 10-year Treasury bonds has reached 21 basis points, indicating a more optimistic market outlook for US economic growth in the near term. This, combined with possible Federal Reserve interest rate cut expectations, is prompting market funds to flow further into high-risk assets, with BTC being the primary beneficiary of an optimistic US economic outlook.

⏩ Market outlook

In the short term, BTC may oscillate and consolidate above $71,000 and gradually test $75,000 or even higher positions in the coming weeks.

However, the market still needs to pay attention to the following risk factors:

Final implementation of Federal Reserve policies: If the rate cut is lower than expected or delayed, the liquidity-driving effect on the market may weaken.

Election uncertainty: If there are fluctuations or disputes in the election results, it may disrupt short-term market sentiment.

Volatility of inflows into BTC ETFs: If the speed of capital inflow slows down, it will affect spot demand to some extent.

Overall, the conditions for BTC's rise are favorable.