Bitcoin crosses $67k to hit 2-month high

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As a seasoned researcher with a penchant for deciphering market trends and a soft spot for cryptocurrencies, I find myself intrigued by this latest surge in Bitcoin prices. With my fingers permanently pressed against the pulse of the digital economy, I’ve seen it all – from the dizzying highs to the crushing lows. Yet, this current rally seems to be shaping up as a textbook example of how market sentiment can drive prices beyond expectations.

Bitcoin surged close to $68,000 on October 15th, primarily due to a massive increase in investments into Bitcoin spot ETFs, marking the highest one-day capital inflow in more than four months.

Bitcoin (BTC) reached a new two-month peak as it moved beyond $67,000, the highest it has been since late July. According to crypto.news’s price data, Bitcoin climbed to $67,800 before pulling back slightly and falling below $66,000 at the time of publication.

In the past day, I’ve witnessed a staggering surge in crypto prices that triggered liquidations surpassing the $300 million mark. Coinglass reveals that the majority of these positions were short-BTC, indicating traders who anticipated lower market values. Earlier short liquidations amounting to over $145 million hinted at an imminent market uptick.

Lately, an upward trend in the U.S. stock market might be fueling increased investor interest in Bitcoin, as it is generally viewed as a high-risk investment. When stock prices rise and the Federal Reserve lowers its lending rates, there’s usually more cash flowing through the markets, which can lead to greater liquidity.

The bullish move also translated into better spot Bitcoin ETF demand. Spot BTC ETFs in the United States experienced the largest capital inflow in four months, pulling in $555.8 million for the first time since June 4.

As a crypto investor, I’ve noticed that despite a bumpy beginning in October, history shows Bitcoin tends to shine in the final quarter of the year. In fact, over the past eight years, this $1.2 trillion asset has averaged a return of over 22% during the last three months of the year.

Bitcoin’s value surged during two prior election cycles, specifically in 2016 and 2020. In these instances, the price doubled and tripled respectively, often starting its rise several weeks before the U.S. presidential election and reaching a record high in the early part of Q1 the following year.

Experts at QCP Capital believe a similar event could occur once more, particularly if a candidate supportive of Bitcoin appears to be in the front running.

In the Polymarket on-chain prediction platform, Donald Trump, the former president, had his greatest advantage against Kamala Harris, reaching a significant difference of more than 13.5%. This contrasts with a 10% difference on similar platforms such as Kalshi.

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2024-10-15 19:49