Optimism for the 2024 U.S. presidential campaign and massive ETF inflows into Bitcoin (BTC) support fresh record levels of Bitcoin over the past three weeks. Market sentiment has evolved positively for Bitcoin due to its renewed strength above $70K, mainly based on on-chain metrics and technical indicators that suggest further upward momentum.
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Trump’s Pro-Crypto Stance Sparks Optimism
Trump’s pro-crypto stance gives hope trailed with the name of “Trump trade,” at least some share of Bitcoin’s rally to over $73,000 is said to be driven by optimism towards a second Trump term in office – something many from within crypto believe would favor Bitcoin. In a crypto-betting market, the incumbent Republican contender, former President Donald Trump, has the best odds to win against Democratic rival Kamala Harris. Still, according to some polls, 67 percent of the respondents favored Trump winning.
He has come out publicly to woo the crypto community by attending the Bitcoin Conference in Nashville and promised to keep his hands off US-held bitcoins. Erik Finman, the teen millionaire who made millions in Bitcoin, has also shared his opinions on the outcome of a possible Trump win — he says… it could drive BTC to $100K by creating a new pro-crypto environment. According to I.G. Australia Pty analyst Tony Sycamore, Bitcoin could achieve new historic highs if it stays above $70,000, where it saw some significant trading volume.
Inflows into Spot Bitcoin ETFs Surging
Spot Bitcoin ETFs Attracting Massive Inflows. The spot Bitcoin ETFs in the U.S. have been big beneficiaries; they have pulled in more than $23.3 billion since launching on January 11. While redemptions were seen in Grayscale’s Bitcoin Trust (GBTC), BlackRock’s IBIT and other ETFs saw large inflows, including a $642.9 million increase as the busiest trading day in six months kept Wall Street on its toes about rising interest rates. Inflows into Bitcoin ETFs surged to over $2.1 billion this week, with a whopping sum of about 870 million liquidity entering on Oct. AssemblyCopyright The strongest ETF inflows since March, according to crypto data from Econometrics. Econometrics writes this is the key: “If you are a holder of Bitcoin and looking for reasons to push higher … this might be it.”
Short-Term Holders Avoid Profit-Taking as SOPR Turns Bullish
For short time-frame holders not looking at the weekly, this represents an opportunity to take that much-anticipated profit without any significant impact on price as SOPR begins its bullish tendencies again. However, profit-taking activity remained low among short-term Bitcoin holders (STH) even as prices advanced. Meanwhile, CryptoQuant’s STH Spent Output Profit Ratio (SOPR) metric reads 1.017%, which amounts to coins being spent at a profit over the past one-day period, but it is still below the “overheating” level of 1.03%. It shows holders are looking for more profits before taking things off the table, which could lead to a continued rally from here.
Futures Open Interest Hits All-Time High
All-Time High Futures Open Interest Futures (O.I.) breaks record as the price of Bitcoin approached $73,000 on October 29, futures open interest (O.I.) across exchanges hit an all-time high. Indeed, according to data from CoinGlass (over $41 billion), O.I. broke the 600k BTC mark, indicating a strong need for Bitcoin futures. The rise in open interest does signal increased investor activity and an upward trend, leading on-chain analyst Julio Moreno (Piza) to predict that Bitcoin “bids up towards $84k if demand holds.
Technical Indicators Signal Bullish Breakout
Potential Bullish Breakout Indicated by Technicals The price action of Bitcoin (BTC) is such that a slight rounding bottom pattern can be seen from the daily chart. This rally that began on October 29 pushed the price to break above its neckline at $71,700 and, upon a daily close beyond this level, would trigger an outlook of bullish breakout targeting $91,362. This would imply a 27% increase from the current level. The daily Relative Strength Index (RSI) still hovers near the overbought area at 67, indicating significant bullish strength. Moreover, the upside is backed by a bullish crossover between 50- and 200-period exponential moving averages (EMA), dubbed the technical golden cross.
Conclusion
Concluding with ETF inflows, high futures open interest, and the impact of plans to regulate cryptocurrencies on elections in the U.S. are driving Bitcoin’s recent price action toward new highs. Bitcoin / U.S. Dollar Short-term forecast.
