Bitcoin (BTC) has continued its upward momentum, gaining an additional 2.4%, briefly reaching a peak of $66,500 before stabilizing around the $65,000 mark. Supported by strong spot demand, the top cryptocurrency maintains its positive outlook. According to QCP Capital, several factors are contributing to Bitcoin’s recent rise. Analysts point to developments related to the U.S. elections, regulatory announcements, and global economic moves as key drivers of this price movement.
Election Uncertainty and New Regulatory Approaches
Optimism in the cryptocurrency market has been fueled by expectations surrounding the U.S. elections. Particularly, Donald Trump’s rise in the polls has created a sense of security in the markets. Additionally, U.S. Vice President Kamala Harris has been sending more favorable signals regarding cryptocurrency regulations, which has further supported the market. Harris’ friendlier tone has generated excitement within the sector, contrasting with the previous hardline stance taken by the Biden administration.
At the same time, some investors are thought to be shifting their capital from Chinese stocks to Bitcoin following disappointment over China’s economic stimulus measures. QCP Capital had previously highlighted this possibility in their analyses. Additionally, the delay of Mt. Gox repayments for another year has relieved potential selling pressure on Bitcoin, positively impacting its price.
Geopolitical Risks Easing, Record Inflows to ETFs
QCP Capital also noted positive geopolitical developments. Reports suggesting that Israel may refrain from attacking Iran’s energy and nuclear infrastructure have helped ease concerns in the markets.
Meanwhile, demand for spot Bitcoin ETFs continues to rise. On Monday, there was a $555 million net inflow into Bitcoin ETFs, the largest since June 4th. Analysts suggest that with no major inflation or employment data expected to be released soon, risk premiums in the crypto market are reduced, providing a more favorable environment for growth.
With October typically showing strength in the second half of the month, QCP Capital sees new opportunities for investors. They recommend strategies that offer high returns at zero cost. If optimism surrounding the U.S. elections persists, Bitcoin is likely to continue its upward trend.
For more insights on cryptocurrency developments, follow Dey There.
Bitcoin, U.S. elections, cryptocurrency regulations, Bitcoin ETFs, geopolitical risks
