LONDON, ENGLAND – OCTOBER 23: A visual depiction of the cryptocurrency, Bitcoin on … [+]
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Today, Bitcoin prices surged markedly, reaching their highest level since late last month as a variety of factors fueled the increase.
The leading cryptocurrency by market capitalization soared to nearly $66,500, based on Coinbase data supplied by TradingView. It saw an increase of about 6.4% in less than 24 hours following a drop to approximately $62,450.
Numerous analysts shared insights on these recent developments, pointing out the reasons behind the bullish momentum.
Joshua de Vos, research lead at CCData, highlighted the significant impact of political happenings.
“A crucial element is the impending US Presidential Election; Donald Trump’s better odds—alongside his pro-crypto viewpoint—have sparked speculation surrounding Bitcoin and the wider digital asset market,” he remarked.
“This political atmosphere, combined with robust performance in traditional equities, has led to a shift towards risk-seeking behavior among investors,” de Vos elaborated.
The analyst also referenced historical market trends, noting that October has typically favored the leading digital currency.
“Historically, October has been a strong month for Bitcoin, with average monthly returns of 28.79% since 2010, making it the third-best month overall,” he specified.
Marc P. Bernegger, cofounder of the crypto fund of funds AltAlpha Digital, also shared his insights on the factors behind Bitcoin’s recent uptick.
“There has been a substantial inflow of buy orders for Bitcoin ETFs,” he noted.
“Moreover, the postponement of Mount Gox repayments was unexpected,” the analyst added.
“In my opinion, the newly announced economic stimulus from China is the primary influence driving today’s gains,” he stated, referring to the country’s plans to boost its sluggish economic growth.
Tim Enneking, managing partner of Psalion, also provided his perspective on Bitcoin’s latest rise.
“The market movements resembled two consecutive short squeezes, though that would be unusual,” he said.
“My understanding is that this surge results from: (1) the S&P 500 hitting a new all-time high and motivating risk-on assets, (2) market fatigue with constrained trading range, (3) a self-fulfilling belief in ‘uptober’, (4) relief regarding some Mt. Gox distributions being deferred to 2025, and (5) a minor recovery Trump appears to have made since Harris’ euphoria diminished,” Enneking clarified.
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS, and SOL.
