In fact, many people wonder why Bitcoin suddenly took off, while many altcoins fell or even stagnated. Behind this is the classic vampire effect in the currency circle. The total liquidity of the currency circle is limited. Funds are like a pot of soup. When Bitcoin is fully fired, the soup is sucked away by it, and the altcoins fall into a "thirsty" dilemma and lack of growth. When Bitcoin enters a sideways phase and the market attention shifts, altcoins have the opportunity to obtain liquidity and keep up with the pace.

At present, the market's expectation for a 25 basis point rate cut at the Federal Reserve's interest rate meeting on November 7 is as high as 93%. If the rate cut comes true, more funds are expected to flow into the crypto market and boost market development.

The US election in November is even more eye-catching. If Trump wins, it will be a major boon to the crypto industry. Large funds may enter the market to drive up the overall price of coins. At present, Bitcoin's solo dance is not a real full-scale bull market, and it is normal for altcoins to perform poorly in the short term. We need to wait patiently, especially after Bitcoin's strong sideways trend, altcoins are expected to usher in a relay race. If there is good news at the macro level, market sentiment will be completely ignited, and altcoins will also burst into amazing performance. The currency circle is a game of patience and courage. Let us sit and wait for the baton of altcoins.

Meanwhile, according to Coinglass, the amount of Bitcoin reserves on centralized exchanges has hit a record low. Does this suggest that Bitcoin prices will continue to rise? Driven by the Fed's rate cuts and the usual strong performance of risk markets in October, Bitcoin broke through $68,000 earlier this week, hitting a new high since July 30, which has filled investors with expectations. But can Bitcoin's rise continue? In the past week, it has risen by more than 15%.

(Cointelegraph) A picture posted on the social platform X shows that the Bitcoin reserves of centralized exchanges have dropped to 2.43 million, a record low. The decline in reserves may mean that investors are transferring Bitcoin to cold wallets, reducing the market supply, and seems to suggest that Bitcoin prices will rise further. However, historical trends show that this phenomenon is not necessarily a reliable indicator for judging Bitcoin price trends.

Since the price of Bitcoin reached an all-time high in March this year, the reserve volume has been declining, but the price has not reached a new high, but has entered a period of volatility. Therefore, it may no longer be effective to judge the future price trend based solely on the Bitcoin reserve volume of the exchange. The liquidity of the Bitcoin market is getting better and better, and the emergence of over-the-counter transactions, futures and spot ETFs has weakened the reference value of this indicator and reduced its relevance.

However, many analysts are still optimistic about the future of Bitcoin. Jonathan de Wet, Chief Investment Officer of Zerocap, optimistically stated that technological breakthroughs lay the foundation for Bitcoin to rise in the coming weeks, and it is expected to break through $70,000 soon. Anndy Lian, an expert at Qukuai Chain, also pointed out that the US presidential election is one of the influencing factors. Trump's leading winning rate brings positive signals to the prospects of cryptocurrency regulation. At the same time, the monetary easing policies of major economies will bring more capital inflows to risk markets including Bitcoin.

To sum up, we must be cautious about the market before the end of October. If the market is good for the cryptocurrency market in November, there will definitely be a large-scale clean-up. Otherwise, how can the dealer sg in the favorable market? Once 70,000 is touched and not stabilized, there will be a large decline. Prepare for the favorable rise in November. If the trend level is fully understood, the rise and fall in the short term will not have any impact on your own transactions. The decline in reserves may be just an appearance. There are also broader market factors that really drive the rise of Bitcoin. Let's wait and see whether Bitcoin will really break through $70,000!