Bitcoin continued its spectacular rally as it surpassed the iconic $71,000 threshold, fueled by massive inflows into U.S. spot ETFs, which have exceeded $22 billion in net inflows since launch.
A bullish momentum fueled by institutional investors
On October 29, 2024, Bitcoin hit a new high of $71,368 across major exchanges, its highest level since June last year. The surge comes amid growing institutional investor adoption, as evidenced by the latest wave of inflows into Bitcoin ETFs.
According to CoinShares data, the week ending October 25 saw $920 million in inflows, bringing the year-to-date total to over $25.4 billion.
According to Farside Investors, 11 US spot Bitcoin ETFs continue to attract strong capital, with over $2.1 billion in inflows during the week of October 18 alone. This trend confirms the growing demand from institutional investors for regulated exposure to Bitcoin.
Technical analysts also highlighted the appearance of a “golden cross” on the chart, a historically bullish indicator when the 50-day moving average crosses above the 200-day moving average.
Macroeconomic factors favor Bitcoin despite the chaos
Although the price dropped to $66,510 following reports of a US Justice Department investigation into Tether, the market quickly recovered. This resilience can be largely explained by the absence of escalation between Iran and Israel following the events of October 26.
The US political situation also seems to favor Bitcoin, as prediction markets suggest that Donald Trump will prevail over Kamala Harris in the November election, despite traditional polls suggesting a tight race.
Down just 5% from its all-time high of $73,679 set in March, Bitcoin is finally breaking out of a consolidation phase that held prices between $55,000 and $65,000, opening up new bullish prospects.
