Bitcoin Surges Back to 70000 Mark Whats Happening Is the Bull Market Truly Making a Comeback

What happened?
The price of Bitcoin (BTC) briefly surpassed $71,000, reaching a new high since June this year, just 5% below its all-time high of $73,700. With strong inflows of funds into Bitcoin spot ETFs, the overall market sentiment has been boosted. According to a report from data provider CoinShares, Bitcoin saw an inflow of funds amounting to $920 million in the week leading up to October 25, contributing to the price breakthrough. The recent market rally has been catalyzed by interest rate cuts announced by many countries, a new round of significant fund inflows into spot ETFs, and an increase in the likelihood of Trump’s victory. Bitcoin is back above the $70,000 mark! The cryptocurrency market has been lackluster since June this year, and after the price dropped to the $53,000 range in early September, Bitcoin has remained relatively stagnant, leaving many investors wondering if the promised bull market has already come to an end. However, in just a few days this week, Bitcoin finally broke out of the four-month-long range-bound market and further challenged the recent high predicted by the market. According to data from CoinGecko, Bitcoin has risen by 5% in the past 24 hours and has broken through the key resistance level of $70,000, with a trading volume of $48 billion, almost double that of Monday. Looking at the trading chart, Bitcoin briefly dropped to the bottom of the $66,510 range in early October and quickly rebounded. This rebound was accompanied by the 50-day moving average crossing above the 200-day moving average, forming a “golden cross,” indicating the potential for further price increases, which has excited the community. Trump’s election prospects and interest rate focus have provided support for Bitcoin prices. The US presidential election has become another major factor affecting Bitcoin prices recently. According to data from blockchain prediction market Polymarket, the probability of Republican candidate Trump winning has risen to 66%, higher than the previous 61%. Market experts believe that Trump’s cryptocurrency-friendly stance is one of the reasons why investors are more willing to support Bitcoin. In fact, as the election approaches, the blockchain market has shown an increasing voice in support of Trump, and investors expect that a Republican administration may further open up policies for digital assets. Despite the recent investigation by the Department of Justice into Tether, the issuer of stablecoins, which briefly caused a drop in Bitcoin prices, it quickly recovered. This latest surge in Bitcoin prices has also been fueled by other factors, such as Tesla CEO Elon Musk’s support at Trump events, which has once again drawn attention to Bitcoin and his supported Dogecoin (DOGE), driving expectations for positive policies in the cryptocurrency market after a Republican candidate’s election. Musk even posted on the X platform and jokingly expressed his willingness to serve the “Department of Government Efficiency” and abbreviated it as “D.O.G.E,” sparking renewed interest in Dogecoin and resulting in a 10% increase after the event. Additionally, recent rate cuts by central banks in various countries, coupled with China’s large-scale monetary and fiscal stimulus measures, may also be key factors driving the rise in the cryptocurrency market. It is worth mentioning that the price dynamics of Bitcoin this time are similar to the trend before and after the 2020 US election. At that time, the market was also in a slump, but Bitcoin immediately experienced a significant surge after the election results were announced, and it grew by 120% from November to the end of the year. Matthew Sigel, Head of Research at asset management company VanEck, believes that a similar expectation exists this time as well. “We saw the exact same pattern in 2020 when the Bitcoin market was in low volatility, but after the announcement of the election winner, there was a quick rebound in volatility as new buyers entered the market.” Sigel believes that this election will likely continue to provide opportunities for Bitcoin to rise. References: cointelegraph, coindesk, coindesk, coindesk