Why is the crypto market rising today? Bitcoin ETF demand and election sentiment drive prices up

• Bitcoin soars above $71,000, showing strongest daily performance in months
• BlackRock's Bitcoin ETF attracted over $300 million in inflows in one day
• Pre-election market sentiment sparks broad crypto rally
• Over $175 million of leveraged short positions were closed out.
• Altcoin market shows new strength with double-digit gains in some tokens

The crypto market showed strength on Tuesday, October 29, 2024, with Bitcoin topping $71,000, its highest level in four months. Trading activity surged across major exchanges, with daily trading volume reaching $48 billion.

Market data showed that momentum is clearly shifting, with buyers dominating the trading session across Asian and European markets. The price change caused a chain reaction in the derivatives market, forcing the company to close more than $175 million worth of leveraged positions.

BlackRock's Spot Bitcoin ETF has emerged as a central figure in the bull run, recording more than $300 million in inflows on Monday alone. October has proven to be a milestone month for institutional adoption, with total ETF inflows exceeding $3 billion across all providers.

Trading patterns suggest strong conviction behind the move, with large buyer activity increasing during trading hours, particularly in Asia. Data from various exchanges showed sustained buying pressure from both retail and institutional investors.

The rally comes at an interesting time in the US political calendar, with election forecasts showing strong support for a particular outcome. Prediction markets indicate that a specific election outcome will occur 66.3% of the time, and some analysts believe that is influencing trading behavior.

Technical analysts have noted some positive developments in Bitcoin's chart pattern. A five-month trading formation could be resolved to the upside, setting the stage for further gains. The break above $70,000 removes a major resistance that had held prices in check since March.

The broader cryptocurrency market reacted positively to Bitcoin's move. Ethereum, the second-largest cryptocurrency by market capitalization, rose 5.3% to trade above $2,600. The rally was spread across various market sectors, with some altcoins posting even stronger performance.

Meme-themed cryptocurrencies showed particular strength, with popular tokens up more than 10%. Bitcoin Cash rose 8%, while Avalanche and Cardano rose 5.86% and 3.96%, respectively. Due to the overall market movement, major crypto indexes rose significantly.

Options market data reveals growing optimism among traders. Interest in the contract, which expires in early November, has focused on raising the strike price, suggesting market participants expect further upside potential.

The cryptocurrency market for institutional investors continues to mature, and Bitcoin ETFs have accumulated considerable assets since their launch. BlackRock's products ranked among the most successful ETF launches of 2024 across all asset classes, highlighting growing mainstream acceptance.

According to market structure analysis, Bitcoin's dominance is approaching 60%, a level historically associated with healthy market conditions. Some market observers have suggested that this could create favorable conditions for altcoin performance in the coming weeks.

Currency flow data shows renewed interest from US-based investors, although current levels are still below previous peaks. This suggests there is potential scope to increase participation as the market continues to develop.

Price analysis identified the $71,000 to $73,000 range as the key area of ​​interest, with technical resistance due to previous trading activity. Breaking through these levels could open the door to unexplored price territory.

Liquidation data provides insight into market positioning, with Bitcoin short sellers experiencing $73 million in losses on the move. Another $39 million in liquidations occurred on Ethereum-related positions, highlighting the impact on the broader market.

Trading volumes have shown consistent strength throughout October, particularly with recent price movements. The sustained increase in trading volume suggests that a wide range of people are participating in the rally.

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