Bitcoin broke past $71,000 Tuesday morning to lead other major altcoins into a bullish trend a week before the US elections. According to CoinGecko’s tracking, Bitcoin touched $71,075 after dipping last week due to rumors circulating over a possible investigation on Tether and the ongoing Middle Eastern conflict.
Experts and industry watchers say the recent Bitcoin breakout is linked to increased inflows into Bitcoin ETFs and the excitement over the November 4 US presidential elections favoring the crypto industry. Despite Bitcoin’s erratic price movements in the last few days, Bitcoin currently rides on a bullish sentiment.
Source: Coingecko
Source: CoingeckoBullish Run Ahead For Bitcoin?
Last week was a rough time for holders and the market as Bitcoin dipped below $66,000 but immediately bounced back and consolidated in the $67,0000 to $68,000 range during the weekend.
Then, Bitcoin broke out and hit $71,075, its best performance over the last four months. According to CoinGecko, Bitcoin’s latest price movement this Tuesday is backed by $51 billion in trading volume, double the amount generated on Monday.
Bitcoin market cap currently at $1.4 trillion. Chart: TradingView.com
Observers like Peter Brandt said that Bitcoin’s latest price action reflects a new bullish phase post-halving. In a Twitter post, the seasoned trader shared Bitcoin has completed its “inverted expanding pyramid” and that the next follow-through is critical. Brandt further explained that this could be Bitcoin’s post-halving run.
Trades From BTC Whales And Inflows Into ETFs Boost The Market
Bitcoin’s recent price surge is attributed to increased trades from Bitcoin whales and inflows into ETFs. According to CryptoQuant’s Mignolet, recent buying can be attributed to whales on Binance, who appear to be the net Bitcoin buyers during the Asian trading hours.
Source: Farside Investors
Also, trading for the Bitcoin ETFs has primarily contributed to the higher-than-usual trading volume. These funds added a net inflow of over 47,000 Bitcoins over two weeks. Aside from Bitcoin, other major altcoins also joined the surge. Dogecoin, for example, increased by 15% due to Trump’s popularity. Then, there’s Shiba Inu (SHIB), which jumped by 8%, Ether (ETH) by 4.9%, and Cardano’s ADA improved by 3%.
Image: Zerocap
Bigger Highs Next?
For many experienced traders, Tuesday’s big jump sets the tone ahead of November’s US elections. Traders and crypto supporters expect Bitcoin to sustain its gains or even hit new highs regardless of the outcome of the presidential elections.
Traders have long favored and anticipated that Donald Trump will win the elections. For many, a Trump win is a bullish catalyst for Bitcoin since he boasts a few pro-crypto policies. It also helps that Trump gets the backing of Elon Musk, a vocal supporter of Bitcoin and blockchain technology. The Democrats, on the other hand, have not made specific policies but plans to introduce regulations in the industry.
Even financial analysts contribute their opinions and projections ahead of the US elections. According to some analysts at Standard Chartered, Bitcoin may hit $73,000 by November 5th. If Trump wins, they predict the price to hit $80,000 or even up to $125,000 before the year ends, especially if the Republicans win Congress.
Featured image from Dall-E, chart from TradingView
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