LONDON, UK – OCTOBER 23: Visual representation of the digital cryptocurrency Bitcoin … [+]
Bitcoin prices rose significantly today, rising to their highest level since late last month, with a wide range of variables driving the rise.
The world's most valuable cryptocurrency in terms of market capitalization rose to around $66,500, according to Coinbase data provided by TradingView. At this point, it fell to nearly $62,450.00 before rising nearly 6.4% in less than 24 hours.
Multiple analysts commented on these developments and highlighted the factors driving this bullish move.
For example, CCData's head of research, Joshua de Vos, emphasized that political developments play an important role.
“A key factor is the upcoming US presidential election. Donald Trump's improved odds of winning, combined with his pro-crypto stance, have sparked speculation around Bitcoin and the broader digital asset sector,” he said. said.
“This political climate, along with strong growth in traditional equities, is contributing to a shift toward more risk-on behavior among investors,” DeVos added.
The analyst also discussed the history of the market, noting that October was generally a good month for the world's most prominent digital currency.
“October has also historically been a strong month for Bitcoin, with an average monthly return of 28.79% since 2010, making it the third best month in history,” he said.
Mark P. Bernegger, co-founder of cryptocurrency fund of funds AltAlpha Digital, also addressed the factors driving Bitcoin's recent rally.
He emphasized that “Bitcoin ETFs are experiencing a large influx of buy orders.''
“Furthermore, Mt Gox's repayments were also postponed, which was unexpected,” the analyst added.
“Personally, I think the economic stimulus package announced by China is the main driver of economic growth today,” he said, referring to East Asian countries' plans to revitalize sluggish economic growth.
Tim Enneking, managing partner at Psalion, also shared his thoughts on the factors behind Bitcoin's recent rally.
“The market movement looked like two short squeezes in a row, which would be unusual,” he said.
“My only theories are (1) the S&P 500 is setting a new ATH, stimulating risk-on assets, (2) the market is tired of trading in ranges, (3) ) is a combination of self-fulfilling prophecies: “Up to Bar'', (4) relief that part of Mt. Gox's distribution has been postponed to 2025, and (5) Harris's. Mr. Trump appears to have made a slight recovery after the euphoria wore off,” Enneking said.
Disclosure: I own some Bitcoin, Bitcoin Cash, Litecoin, Ether, EOS, and SOL.
