In a historic event, Bitcoin, the leading cryptocurrency, has, for the first time since June, surpassed the $70,000 mark.
This notable leap in value coincided with an immense inflow of over $22 billion into exchange-traded funds (ETFs) based in the United States.
On October 28, Bitcoin’s value experienced a 3% spike, hitting a pinnacle at $70,150, as per TradingView data. Despite this, the cryptocurrency experienced a slight fall, settling below its new high.
Rise in Bitcoin ETF Investment
Simultaneously with the price surge, Bitcoin ETFs saw a marked rise in inflows. Based on a report by CoinShares, Bitcoin funds recorded $920 million inflows within just a week, ending on October 25. This brings the total inflows for the year into Bitcoin ETFs to a staggering $25.4 billion.
Farside Investors, situated in Liverpool, revealed that during the week ending October 18, eleven US spot-based ETFs garnered over $2.1 billion in inflows.
Cryptocurrency traders observed a “golden-cross” pattern in the Bitcoin market. This bullish trend occurs when the 50-day rolling average of Bitcoin exceeds its 200-day long-term average, hinting at a potential price rise in the future.
Bitcoin’s price did experience a brief decline to $66,510 on October 25, after news emerged that Tether, a prominent stablecoin issuer, was under investigation by the US Department of Justice. However, the price of Bitcoin recovered quickly. This resurgence happened alongside a notable rise of over 32 percentage points in Donald Trump’s polling figures against Vice President Kamala Harris, in the lead-up to the US Presidential election set for November 5.
Contrarily, national voter polls indicated a slim 1.3 percentage point lead for Harris over the former US president. The stability of Bitcoin’s price could also be attributed to the peaceful international landscape, with no retaliatory actions from Iran after an Israeli attack on October 26.
Now, the cryptocurrency is fast approaching its historical peak of $73,679 set on March 13 of this year. Bitcoin has soared past its year-long steady trading bracket of $55,000 – $65,000, representing its highest price since mid-May.
These developments underscore the clear focus on Bitcoin’s price and the instrumental role of Bitcoin ETFs in potentially driving this price strengthening.
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