A week before the US elections, Bitcoin topped $71,000 on Tuesday morning, leading other major altcoins into a bullish trend. Bitcoin hit $71,075 last week after plummeting due to rumors surrounding a possible investigation into Tether and the ongoing Middle East conflict, according to CoinGecko tracking.
Experts and industry watchers say the recent Bitcoin breakout is related to increased inflows to Bitcoin ETFs and the excitement of the November 4 US presidential election, which favors the crypto industry. . Despite Bitcoin's volatile price movements over the past few days, Bitcoin is currently on a bullish streak.
Source: Coingecko
Will bulls get ahead of Bitcoin?
Last week was a tough time for holders and the market as Bitcoin dipped below $66,000, but quickly rebounded and settled in the $67,000-$68,000 range over the weekend.
Bitcoin then broke out and reached $71,075, its best performance in the past four months. According to CoinGecko, Bitcoin's latest price movements this Tuesday were 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 movements reflect a new bullish phase following the halving. The experienced trader said in a post on Twitter that Bitcoin has completed an “inverted expansion pyramid” and the next follow-through is critical. Brandt further explained that this could be a post-halving drop in Bitcoin.
Trades from BTC whales and inflows into ETFs boost market
Bitcoin's recent price surge is believed to be due to increased trading from Bitcoin whales and inflows into ETFs. According to CryptoQuant’s Mignole, the recent purchases may be due to whales on Binance, which appear to be net buyers of Bitcoin during Asian trading hours.
Source: Farside Investors
Additionally, trading in Bitcoin ETFs was the main contributor to the higher-than-usual trading volume. These funds added net inflows of over 47,000 Bitcoin in two weeks. Besides Bitcoin, other major altcoins also joined in this surge. For example, Dogecoin rose 15% due to Trump's popularity. Next, Shiba Inu (SHIB) rose by 8%, Ether (ETH) rose by 4.9%, and Cardano’s ADA improved by 3%.
Image: Zerocap
An even bigger high next?
For many experienced traders, Tuesday's big rally sets the tone heading into November's US election. Traders and crypto advocates expect Bitcoin to maintain its gains or even hit new highs regardless of the outcome of the presidential election.
Traders have long supported Donald Trump, expecting him to win the election. For many, Trump's victory is a bullish trigger for Bitcoin. This is because he boasts of several pro-cryptocurrency policies. It also helps that Trump has the backing of Elon Musk, a vocal supporter of Bitcoin and blockchain technology. The Democratic Party, on the other hand, has plans to introduce regulations for the industry, although they have not presented specific policies.
Even financial analysts offer their opinions and predictions ahead of the US election. According to some analysts at Standard Chartered, Bitcoin could reach $73,000 by November 5th. If Trump wins, he expects prices to reach $80,000 or even up to $125,000 by the end of the year, especially if Republicans win Congress.
Featured image from Dall-E, chart from TradingView
