Bitcoin (BTC) has just broken past the $70,000 milestone for the first time since June 10, buoyed by strong institutional inflows into U.S. spot Bitcoin exchange-traded funds (ETFs). The top cryptocurrency hit an intraday high of $70,150 on Oct. 28 before sliding back below $70,000, as data from TradingView revealed.
The recent rally reflects a powerful two-week period of inflows into Bitcoin ETFs, suggesting that institutional investors are growing increasingly bullish. According to CoinShares, Bitcoin funds recorded $920 million in net inflows for the week ending Oct. 25, bringing the year-to-date total to an astonishing $25.4 billion. This uptick builds on an earlier influx into U.S. spot-based ETFs, which amassed over $2.1 billion in net inflows for the week ending Oct. 18, as per Farside Investors.
Resilient Despite Market Volatility
Bitcoin faced a minor setback on Oct. 25 when it dropped to a local low of $66,510 amid news of a potential investigation into Tether by the U.S. Department of Justice. Despite this, BTC quickly rebounded, demonstrating resilience in the face of regulatory uncertainty. This latest spike can be attributed in part to current geopolitical tensions and changing sentiments in U.S. politics. In an unusual twist, Bitcoin’s recovery coincided with Republican candidate Donald Trump gaining a significant lead on Vice President Kamala Harris ahead of the Nov. 5 U.S. presidential election, according to Polymarket.
While traditional polls still show a narrow lead for Harris, with FiveThirtyEight reporting a 1.3 percentage point advantage, Bitcoin’s price appears to be reflecting market optimism about Trump’s political comeback. Analysts speculate that Trump’s potential influence on financial policies could play a role in attracting investors to Bitcoin as a hedge against future regulatory shifts.
Geopolitical Tensions and a Push Towards All-Time Highs
Iran’s lack of retaliation following Israel’s Oct. 26 military action has also contributed to market stability, allowing Bitcoin to maintain its upward momentum. Bitcoin is now only 5% shy of its all-time high of $73,679, set on March 13. After spending several months trading between $55,000 and $65,000, the cryptocurrency has finally broken free from its range-bound pattern.
What’s Fueling Bitcoin’s Unprecedented Rally?
- Institutional Inflows: The surge in Bitcoin ETFs has provided substantial buying pressure, underscoring increased interest from institutional investors. This growing involvement highlights Bitcoin’s acceptance as an asset class and its role as a portfolio diversification tool.
- Political Events: Trump’s rise in the polls has created speculative excitement, with some investors seeing a potential boost in value if his policies favor cryptocurrencies.
- Geopolitical Stability: The relative calm in the Middle East has likely contributed to a less volatile market, allowing Bitcoin’s price to continue climbing.
Also Read: Bitcoin Miners Soar Up To 24.4% As BTC Hits $70K, AI Diversification Fuels Rally
Bitcoin’s Path Forward
With BTC now within striking distance of its record high, analysts are closely watching whether the cryptocurrency can maintain its momentum. If the inflows into Bitcoin ETFs continue, BTC could break its historical resistance level of $73,679, potentially entering uncharted territory.
This milestone demonstrates Bitcoin’s maturity as a financial asset and its increasing allure as a hedge against global uncertainties. As traditional and institutional investors further embrace the digital asset, Bitcoin’s price is likely to experience more dynamic shifts, with geopolitical developments and ETF performance playing pivotal roles in shaping its trajectory.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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