Ryan Lee, the lead analyst at Bitget Research, has noted that while Bitcoin exchange-traded funds (ETFs) are significantly driving demand, there are various other elements contributing to Bitcoin’s upward momentum.
Since the launch of spot Bitcoin (BTC) ETFs in the U.S. in January 2024, the market has seen substantial inflows, with these investment vehicles raking in over $24 billion in net flows, including an impressive $5.4 billion in just October.
However, Lee emphasized to crypto.news that the bullish trend of Bitcoin cannot be attributed solely to ETFs, as the cryptocurrency has recently tested the $73,000 level amid a strong recovery.
**Political and Technical Factors Fueling Optimism**
Lee identified the impending U.S. presidential election as a significant factor driving Bitcoin’s upward trajectory. Notably, both prominent candidates, Donald Trump and Kamala Harris, have expressed their support for clearer regulatory guidelines surrounding digital assets.
While Trump has taken a more assertive approach, Lee anticipates a generally supportive attitude toward the crypto sector, irrespective of the election’s outcome. This sentiment is likely to further enhance market confidence in Bitcoin.
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Additionally, Lee highlighted technical indicators that suggest a bullish outlook for Bitcoin. On October 27, a golden cross pattern emerged, where Bitcoin’s 50-day moving average surpassed its 200-day moving average. This crossover is often seen as a positive signal for future price movements.
**Upcoming Economic Indicators to Influence the Market**
Looking ahead, Lee pointed out that several key economic events could influence Bitcoin’s performance throughout November. He indicated that the Federal Reserve’s interest rate decision on November 7 might result in a 25-basis-point cut, which could enhance market liquidity and benefit cryptocurrency assets.
Moreover, the CME’s Bitcoin open interest has recently hit a record high, reflecting significant interest in Bitcoin from the futures market. Sustained inflows into Bitcoin ETFs are also expected to provide ongoing support for the asset.
Lastly, the potential acquisition of Bitcoin by Microsoft remains a possibility. Lee believes that if Microsoft’s board greenlights the purchase, it would represent a pivotal moment for Bitcoin’s acceptance and could significantly attract institutional interest.
Given these diverse influences, Lee forecasts that Bitcoin’s price may fluctuate between $66,000 and $75,000 in November, although he warns that market volatility is likely to persist.
As of the latest update, Bitcoin has experienced a 4% decline over the past 24 hours, trading at $69,350. Its market capitalization has fallen below the $1.4 trillion threshold, with a daily trading volume of $45 billion.
BTC Price | Source: crypto.news
One contributing factor to the recent BTC price correction may be the consecutive gains over the past week, which pushed Bitcoin into the overbought territory. Currently, the BTC Relative Strength Index is around 32, indicating that the leading cryptocurrency is nearing the oversold zone.
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