Bitcoin surged past $71,000 on Tuesday morning, leading other major altcoins into a bullish trend just a week before the US elections. CoinGecko reported that Bitcoin reached $71,075 after experiencing a slight dip the previous week due to rumors of a possible investigation into Tether and the ongoing conflict in the Middle East.
Industry experts and observers attribute Bitcoin’s recent breakout to increased inflows into Bitcoin ETFs and the anticipation surrounding the November 4 US presidential elections, which are seen as favorable for the crypto industry. Despite some erratic price movements in recent days, Bitcoin is currently riding on a bullish sentiment.
Last week saw a turbulent period for Bitcoin holders and the market as the price briefly dropped below $66,000 before bouncing back and consolidating in the $67,000 to $68,000 range over the weekend. The subsequent breakout pushed Bitcoin to $71,075, marking its strongest performance in the last four months. This surge was supported by a trading volume of $51 billion, which doubled from the previous day.
Prominent trader Peter Brandt suggested that Bitcoin’s recent price action indicates a new bullish phase post-halving. He noted on Twitter that Bitcoin has completed an “inverted expanding pyramid,” signaling a potential post-halving rally.
The recent price surge in Bitcoin is credited to increased trading activity by Bitcoin whales and inflows into ETFs. CryptoQuant’s Mignolet highlighted that whales on Binance were significant net buyers of Bitcoin during Asian trading hours. Additionally, trading in Bitcoin ETFs contributed to the higher trading volumes, with a net inflow of over 47,000 Bitcoins in the past two weeks.
In addition to Bitcoin, other major altcoins also experienced a surge. Dogecoin rose by 15% due to Trump’s popularity, while Shiba Inu (SHIB) jumped by 8%, Ether (ETH) by 4.9%, and Cardano’s ADA improved by 3%.
The significant jump in Bitcoin’s price on Tuesday sets the stage for potential further highs leading up to the US elections in November. Traders and crypto enthusiasts are optimistic about Bitcoin’s ability to sustain its gains or even reach new highs regardless of the election outcome.
Many traders anticipate that a victory for Donald Trump in the elections would be bullish for Bitcoin, given his pro-crypto stance and support from influential figures like Elon Musk. On the other hand, Democrats have not outlined specific policies but are expected to introduce regulations in the industry.
Financial analysts at Standard Chartered predict that Bitcoin could reach $73,000 by November 5th. In the event of a Trump victory, they foresee a price target of $80,000 or potentially up to $125,000 by the end of the year, especially if the Republicans secure control of Congress.
Overall, the recent surge in Bitcoin’s price and the positive outlook for the cryptocurrency market ahead of the US elections reflect a growing enthusiasm and optimism among traders and investors.
