Bitcoin has just recorded a new high in the past four months, reaching 71,500 USD, opening new expectations for investors. This price increase is not merely a short-term shock; it also reflects strong macroeconomic factors and market sentiment that are occurring, especially in the context of the upcoming U.S. presidential election.
Impact of the U.S. Election
The expectation of a victory for Donald Trump has become the main driving force pushing Bitcoin prices to soar. Specifically, Trump has built his image as a cryptocurrency-supporting candidate, promising to support necessary regulations for this industry. This has increased interest from both individual and institutional investors.
Positive Market Sentiment
Fear of missing out (FOMO) is rising as the number of profitable wallets increases, leading to a strong wave of buying. In the past two weeks, Bitcoin ETF funds have attracted capital inflows of up to 3 billion USD, demonstrating sustainable interest from institutional investors. This is further reinforced as the Fear and Greed Index is currently at 72, indicating that greed is dominating the market.
Technical Analysis
Technically, Bitcoin has just broken through a bearish channel that has existed for the past seven months, and is now in a golden cross formation, as the 50-day moving average crosses above the 200-day moving average. These indicators suggest that reaching the previous all-time high (ATH) of 73,750 USD in March is entirely feasible. The next level could be 80k, and even 100k in the near future.
Additionally, seventy-two percent of Bitcoin traders are currently active users, according to a report from IntotheBlock. This indicates that demand is far exceeding supply, creating a favorable environment for Bitcoin prices to continue rising. As more active users hold onto their Bitcoin, this further increases confidence among investors.
The Growth of ETF Funds
On October 28, Bitcoin ETF inflows reached 705 million USD within two weeks, with BlackRock leading among the issuers, attracting 315 million USD. Currently, BlackRock owns over 400,000 Bitcoin, and may soon surpass Satoshi to become the largest Bitcoin holder. This not only shows strong interest from institutions but also increases market sustainability.
With all these factors, Bitcoin is in a strong position, and it is very likely that we will witness a new ATH in the near future. Investors should continue to closely monitor market developments and prepare for upcoming opportunities! 🌟📊
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