Bitcoin soars back to 70000 mark What happened Is the bull market really back

What happened?
The price of Bitcoin (BTC) briefly surpassed $71,000, reaching a new high since June this year, just 5% away from its all-time high of $73,700.
The overall market sentiment has been boosted by strong inflows into Bitcoin spot ETFs. According to a report from data provider CoinShares, inflows into Bitcoin reached $920 million in the week ending October 25, providing a strong push for the price to break through.
Factors such as interest rate cuts announced by many countries, a new round of large-scale inflows into Bitcoin spot ETFs, and an increased probability of Trump’s victory have all been catalysts for the recent market rally.
Bitcoin returns to the $70,000 mark!
Since June this year, the cryptocurrency market has been performing averagely, and after the price dropped to the $53,000 range in early September, Bitcoin has been relatively quiet, leaving many investors wondering if the promised bull market is already over.
However, in just a few days this week, Bitcoin has finally emerged from the four-month-long volatility and is further challenging the recent high predicted by the market.
According to data from CoinGecko, Bitcoin has risen by 5% in the past 24 hours and has broken through the key resistance level of $70,000, with a trading volume of $48 billion, almost double that of Monday.
From the trading chart, it can be seen that Bitcoin quickly rebounded after briefly dropping to the bottom of the $66,510 range in early October. This rebound was accompanied by the 50-day moving average closing above the 200-day moving average, forming a “golden cross,” indicating the potential for further price increase and causing excitement within the community.
Trump’s election prospects and interest rate focus provide support for Bitcoin prices
The US presidential election has become another major factor influencing Bitcoin prices. According to data from blockchain prediction market Polymarket, the probability of Republican candidate Trump winning has risen to 66%, higher than the previous 61%.
Market experts believe that Trump’s crypto-friendly stance is one of the reasons why investors are more willing to support Bitcoin. In fact, as the election approaches, the blockchain market has shown an increasing voice of support for Trump, and investors expect that a Republican administration may further open up policies for digital assets.
Despite the recent investigation by the Department of Justice into stablecoin issuer Tether, which briefly caused a drop in Bitcoin prices, they quickly recovered.
Bitcoin’s recent surge has also been supported by other factors, such as Tesla CEO Elon Musk’s support at Trump events, which has brought Bitcoin and his supported Dogecoin (DOGE) back into the spotlight, driving expectations in the cryptocurrency market for favorable policies after the Republican candidate’s election.
Musk even posted on the X platform, jokingly stating that he is willing to work for the “Department of Government Efficiency” and abbreviating it as “D.O.G.E,” sparking renewed interest in Dogecoin among investors and resulting in a 10% increase after the event.
In addition, recent interest rate cuts by central banks in many countries, coupled with China’s large-scale monetary and fiscal stimulus measures, may also be key factors driving the rise in the cryptocurrency market.
It is worth mentioning that Bitcoin’s price dynamics this time are similar to the trend before and after the 2020 US election. At that time, the market was also in a slump, but after the election results were announced, Bitcoin quickly experienced a significant surge and grew by 120% from November to the end of the year.
Matthew Sigel, Head of Research at asset management company VanEck, believes that there is a similar expectation this time as well. “We saw the exact same pattern in 2020 when the Bitcoin market was in low volatility, but after the announcement of the election winner, there was a quick rebound in volatility as new buyers entered the market.”
Sigel believes that this election is likely to continue to provide opportunities for Bitcoin to continue its upward trajectory.
Reference:
cointelegraph, coindesk, coindesk, coindesk