On October 29, after three months of fluctuations, Bitcoin finally returned to $70,000. This $70,000 mark seems to be particularly important. It is not only the high point of the bull market in 2021, but also the psychological price for many people to judge whether to enter the market.
Ethereum, which was also somewhat disappointing, has recently rebounded to over $2,600 after falling to $2,382. Some altcoins that adjusted a few days ago have finally begun to rebound.
It is worth noting that the current market may experience drastic fluctuations, so you must remain calm and avoid making impulsive decisions due to FOMO emotions!
So, what factors are behind the market's rise?
First, the Fed is about to cut interest rates again
The Fed cut interest rates by 50 basis points in September, a move that exceeded expectations, and Bitcoin also rose in response. Now, the market generally expects a 25 basis point rate cut in November, which is seen as positive news. After all, the starting point of the last bull market was also after the rate cut in March 2020.
The Fed's continued interest rate cuts will inject more liquidity into the global market, which is good news for risky assets. In an environment of ample liquidity, market sentiment has improved significantly.
In addition, Microsoft is also considering buying Bitcoin
More and more large companies are considering Bitcoin as a strategic reserve. In a recent filing by Microsoft with the U.S. Securities and Exchange Commission, it was mentioned that the possibility of using Bitcoin as a hedge against inflation and other macroeconomic impacts will be discussed at the next shareholder meeting.
Finally, the continued inflow of funds into BTC spot ETFs is also a positive sign
Since the beginning of this month, the purchasing power of Bitcoin spot ETF has been quite strong. Although there was a net outflow of funds in the past 7 days, the remaining 12 days were all net inflows, and the inflow amount was also considerable. In particular, on October 14, the single-day net inflow exceeded US$555.86 million.
Uptober
In addition to data, we can also add a sense of ritual. Since Bitcoin began to be widely popular in 2017, it has risen in October almost every year. Regardless of the market sentiment of the year, October has basically performed well. In October 2024, with Bitcoin breaking through $70,000, this trend is naturally no exception.
Election is coming
Usually, the crypto market will see a wave of growth around the US election. After the results of the last election came out, the market even rose for a while, but there were some pullbacks in the days before and after.
It is worth noting that whether Harris or Trump comes to power, it is good news for the crypto market in the long run. Therefore, some funds are continuing to bet on future market conditions.
Overall, the 11 Bitcoin ETFs in the United States saw a total of $2.1 billion in net inflows in the previous week, which drove the price up. The reason is simple: political factors are increasing the public's demand for Bitcoin. Whether it is Trump's lead over Harris in the election or the political instability caused by the defeat of Japan's ruling party, it has stimulated investors' potential demand for Bitcoin.
In the short term, Bitcoin is still expected to show an upward trend, and trading sentiment is also quite stable. In addition, Bitcoin can be used as an investment target for political hedging, fighting inflation and currency crises, and its prospects are even more promising.
Are there still cows in the copycat industry?
Now everyone is paying attention to why only Bitcoin is rising while altcoins are basically not moving.
The current situation is that the upward trend of Bitcoin has attracted the main attention of the market. Only when BTC breaks through first can it slowly drive the recovery of the overall market and the altcoin market. The altcoins lack the momentum required for a breakthrough, and market confidence and sentiment need to gradually recover from the shock adjustment in the past 7 months. Bitcoin has always been the leader of the market. Only when it breaks through the siege can the altcoins usher in the dawn. Once Bitcoin really starts to accelerate its rise, it will attract more external funds to enter the market, thereby promoting the development of the overall market.
By then, even pigs will be able to fly, and the copycat season will naturally arrive.
In fact, no matter how many traps you have fallen into or how much you have lost before, as long as you firmly grasp the subsequent market conditions, everything will be fine.
So, the real duel has begun.
It is no longer meaningful to discuss whether there will be a big bull market or when it will come. The market has given a clear message, coupled with the continued buying of ETFs, the US election is about to end, and the interest rate cut has been finalized.
These factors that determine the general trend are gradually becoming clear, and the price of Bitcoin is also continuing to rise. If you still don’t understand, it’s not just a matter of luck, but a matter of your own cognition.
After so long, we have come here. Everyone has experienced difficulties. We must always ask ourselves our original intentions and goals. The market is ever-changing. Today, some people say it will rise, and tomorrow, some people say it will fall. Today, a certain coin will increase by a hundred times, and tomorrow it will be replaced by another one.
Don't let the market's comments shake your confidence. As Bitcoin returns to $70,000, the rotation rhythm of the altcoin sector will definitely accelerate. This is a test of patience, because the rotation rise between sectors takes time and more confidence!
In the short term, you can pay attention to the following altcoins:
ABOUT
Sui is an innovative Layer-1 blockchain that aims to change the rules of the game for Web3. Developed by Mysten Labs, it uses a unique object-centric data model and secure Move programming language to provide super scalability and speed. This novel approach allows Sui to process transactions in parallel, greatly improving throughput while reducing transaction costs.
BABY
PEPE is an Ethereum-based deflationary memecoin inspired by the famous Pepe the Frog online meme. Since its launch in April 2023, it has quickly attracted attention, skyrocketed in value, and attracted the attention of the crypto community.
