Bitcoin’s recent bull run has brought its price to around $70,000, leading many to speculate if the next stop is $100,000. Several factors, including the U.S. election, ETF approvals, and market sentiment, will impact Bitcoin’s future trajectory.
Bitcoin has experienced a strong upward trend, gaining over 2% in the past week as the “Uptober” effect sweeps through the crypto market. It is currently trading at $67,100, its highest level in three months. The market sentiment has also shifted from fear to greed, with the crypto fear and greed index sitting at 63.
Investors are optimistic, especially with the upcoming U.S. presidential election. Former President Donald Trump, who has proposed crypto-friendly policies, is gaining momentum in the polls. Many believe that his potential win could push Bitcoin to new heights, as his policies are seen as beneficial for the crypto industry.
The recent approval by the U.S. Securities and Exchange Commission (SEC) to allow options trading for several spot Bitcoin ETFs is a significant development for the Bitcoin market. This change opens the door to greater liquidity and smoother price movements. The NYSE and the Chicago Board Options Exchange can now offer options for various Bitcoin ETFs, including the Grayscale Bitcoin Trust, Grayscale Bitcoin Mini Trust, and Bitwise Bitcoin ETF.
The approval by the SEC, along with the recent Nasdaq approval to list options for BlackRock’s iShares Bitcoin Trust, means that more financial products related to Bitcoin will be available on major U.S. exchanges. This broader access to crypto could attract a wider range of participants, from institutional players to everyday investors. Inflows into Bitcoin ETFs have been strong, reaching over $2.13 billion in the week ending October 18, pushing total assets under management to $52 billion.
As Bitcoin approaches the $70,000 mark, experts have shared their insights on where the market might head next. Some analysts believe that Bitcoin is currently in a “Boring Zone,” consolidating around the $68,000 level while altcoins show signs of recovery. This phase is seen as a coiled spring waiting for a jolt of liquidity, which could lead to large upward movements.
Bullish momentum signals, such as the market value to realized value momentum indicator, are flashing, indicating more price gains to come. Rising open interest in Bitcoin CME Futures is another factor contributing to Bitcoin’s current momentum. However, higher open interest can also lead to increased volatility.
Macroeconomic factors, such as the U.S. presidential election and the Federal Reserve’s decision on interest rates, will also influence Bitcoin’s price movement. A Trump victory and a Fed rate cut could create a perfect storm for Bitcoin’s price to surge beyond $70,000.
Analysts have different predictions for Bitcoin’s next target, with some believing it could reach $98,000 and others suggesting a range between $90,000 and $160,000. Once Bitcoin enters price discovery, trading above previous all-time highs, market euphoria tends to drive prices much higher in a short period.
While the momentum currently favors Bitcoin’s rise, investors should monitor technical indicators and broader economic factors to gauge Bitcoin’s next move. It is important to trade wisely and invest only what can be afford to lose.