In a remarkable development, Bitcoin, the leading cryptocurrency, has successfully surged past the $71,000 mark. This milestone, once elusive in recent months, marks a notable 12% increase this October, in alignment with the anticipated ‘Uptober rally’. What are the driving forces behind this much-anticipated surge? Let’s delve deeper into the factors contributing to this rally.
Approaching All-Time Highs
Bitcoin is rapidly closing in on its all-time high, now just 3.5% shy of its peak at $73,750. This upward momentum is resonating throughout the crypto market, which has seen a 4.56% increase over the past day, bringing the total market cap to $2.4 trillion. Additionally, market volume has skyrocketed by 89.41%, reaching $100.99 billion. The 24-hour trading volume notably doubled, hitting the $100 billion mark. In tandem, meme coins like Dogecoin (DOGE) and Popcat (SOL) have surged by 14% each.
Binance Whales At Play?
According to analytics platform CryptoQuant, the unexpected Bitcoin uptrend can be attributed to significant trading activity, particularly from Binance whales. CryptoQuant analyst Mignolet highlighted that these whales have been actively trading during Asian market hours since October 14.
Furthermore, a rising proportion of Bitcoin holdings among US-based institutions and significant wallets is fostering further optimism. Recently, the number of wallets holding over 100 BTC has grown, while retail holdings have seen a slight decline.
Bitcoin ETFs: Another Layer of Support
Bitcoin ETFs in the United States have attracted over $3.5 billion in inflows this month, underscoring a growing demand for direct Bitcoin exposure. According to SoSoValue data, BTC ETFs recorded a total net inflow of $479.35 million on October 28. Among these, BlackRock’s ETF IBIT experienced the highest net inflow for the day, with $315.19 million.
The Macroeconomic Factors
Investors are also speculating on the potential impact of the upcoming US election. Currently, Trump is leading in prediction markets, pledging to transform the US into the ‘crypto capital of the planet’ if elected. In contrast, Harris maintains a more moderate regulatory stance, deviating from Biden’s more stringent approach.
The US macroeconomic environment is poised to influence Bitcoin prices, with significant data releases expected, including Q3 GDP, employment figures, and inflation indicators such as the Personal Consumption Expenditures (PCE) index, which is crucial for the Fed’s interest rate decisions.
As major events loom, market sentiments remain mixed. While some foresee potential corrections, the prevailing sentiment leans towards a continued bullish trajectory. What are your thoughts? Could this rally herald a new wave of optimism in the market? Stay tuned for further updates.
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