Recently, Bitcoin has crossed the $70,000 mark, garnering significant attention in the global cryptocurrency market. This price movement signifies that Bitcoin, after several months of adjustment, has re-entered a trajectory of strong upward momentum. The surge is propelled not only by technical indicators but also by substantial inflows from institutional investors, alongside the influences of macroeconomic and political factors. Currently, Bitcoin continues to dominate market performance and attracts increasing interest from investors.

Tdasx: Bitcoin Price Breaks $70K, Market Rebounds Strongly

On 28th, the price of Bitcoin first surpassed the $70,000 threshold, marking its highest level since June 2024 and signaling another robust rebound in the global cryptocurrency market. After reaching a peak of $71,580, the price of Bitcoin saw a slight retreat but remains around the $70,000 level. Compared to the historical high of $73,679 set in March of this year, the current price is only 3% lower, indicating that the market may be in the early stages of a new upward cycle.

The recent volatility in the price of Bitcoin reflects the impact of multiple market factors. On October 25, following the announcement of the U.S. Department of Justice on an investigation into stablecoin issuer Tether, the price of Bitcoin briefly dropped to $66,510. This event triggered short-term selling pressure; however, it did not have a lasting impact on the overall trend. Subsequently, as global geopolitical situations evolved, particularly with the lack of response of Iran to attacks on Israel, the price of Bitcoin swiftly rebounded, easing market sentiment and pushing prices back to high levels.

From a technical standpoint, Bitcoin recently experienced a "golden cross," where the 50-day moving average surpassed the 200-day moving average. This technical signal is often regarded as a significant bullish indicator, suggesting a potential price breakout in the future. This technical performance resonates with the current optimistic market sentiment, further reinforcing the confidence of investors in sustained price increases.

The quarterly performance of Bitcoin also indicates that the market remains robust. Historical data shows that Bitcoin has never experienced a bear market in the fourth quarter of a halving year, with the average increase in the fourth quarter of 2024 reaching 31.34%. Bitcoin saw a 7.29% increase in September, marking its best September performance on record. Analysts generally expect the price of Bitcoin to potentially surpass $90,000 to $100,000 by year-end.

The options market similarly reflects the optimistic expectations of investors for the future of Bitcoin. Demand for call options expiring in December with a strike price of $80,000 has surged, indicating a positive outlook for price increases before the end of this year. Additionally, Bitcoin options with a strike price of $100,000 set to expire on November 8 show implied volatility (IV) exceeding 100, suggesting that the market anticipates significant price fluctuations in the near future.

Tdasx: Strong ETF Inflows Fuel the Rise of Bitcoin

The sustained climb in the price of Bitcoin is driven not only by technical factors and market sentiment but also by significant institutional inflows. Since the beginning of 2024, total inflows into Bitcoin ETFs have reached $25.4 billion, far exceeding the totals of previous years. In just the week ending October 18, 2024, eleven U.S. spot Bitcoin ETFs attracted over $2.1 billion in net inflows, highlighting the strong market interest in Bitcoin as a safe-haven asset and growth investment tool. This scale of inflow not only reflects market recognition of the long-term value of Bitcoin but also propels its price higher.

In terms of institutional participation, the assets under management of iShares Bitcoin Trust of BlackRock have surpassed $28 billion, demonstrating the confidence of the largest asset management firm of the world in Bitcoin. Overall, the total assets managed by all Bitcoin ETFs have reached $78.9 billion, accounting for about 5% of the total market capitalization of Bitcoin. This level of holdings indicates deep institutional engagement in the Bitcoin market and provides strong support for the market liquidity and price stability of Bitcoin.

Notably, Bitcoin ETF holdings are approaching a historic milestone of 1 million BTC. Currently, Bitcoin ETFs hold a total of 977,000 BTC, with the market anticipating this figure to reach 1 million BTC in the coming weeks. Achieving this milestone will further enhance the influence of Bitcoin in the global financial market, prompting more institutional inflows and accelerating the market expansion of Bitcoin.

The ongoing inflows into ETFs not only provide robust funding support for Bitcoin but also contribute to the overall prosperity of the cryptocurrency market. The deep involvement of institutional investors makes the Bitcoin market more stable in the long term, with ETF asset allocation models emerging as key drivers of cryptocurrency mainstream adoption. As Bitcoin ETF funds continue to flow in, market demand for Bitcoin will persistently grow, establishing a solid foundation for future price increases.

Tdasx: Macroeconomic Factors and Elections Intertwined, Multiple Influences Driving Bitcoin Market

The current volatility in the Bitcoin market is driven not only by inflows and technical signals but also significantly influenced by macroeconomic and political factors. The approach of the 2024 U.S. presidential election is having a notable impact on the Bitcoin market. According to Polymarket data, Trump leads Harris by 32 percentage points in election support, while the polling of FiveThirtyEight shows Harris with a narrow 1.3-point lead. These starkly different polling results reflect market uncertainty regarding future political dynamics. However, the pro-cryptocurrency candidate image of Trump generates optimism in the market, with expectations that he would implement favorable policies for cryptocurrency, potentially boosting the Bitcoin market.

In addition to electoral uncertainty, the global macroeconomic environment is another important driver of Bitcoin price fluctuations. The worldwide decline in interest rates, particularly the monetary easing policies in the U.S. and other major economies, has provided liquidity support for the Bitcoin market. Except for Japan, most global economies are cutting rates, coupled with the inflows into U.S. spot Bitcoin ETFs, which have become the primary driver of Bitcoin price increases. Since the beginning of 2024, Bitcoin has surged 65%, significantly outpacing traditional safe-haven assets like gold, which rose 32%, and the S&P 500, which gained 24%.

However, the market is not entirely optimistic. The decline in the copper/gold ratio has raised warnings for the Bitcoin market. In 2024, this ratio fell by 15%, the largest drop since 2018. A declining copper/gold ratio is often viewed as an indicator of economic health, suggesting that the global economy may face deeper challenges, placing some pressure on risk assets, including Bitcoin. Nevertheless, the current macro environment still provides a relatively favorable foundation for Bitcoin.

The strong performance of the market capitalization of Bitcoin further confirms its increasing dominance. As of October 2024, the market cap dominance of Bitcoin has reached 59.8%, the highest level since 2021. This means that the influence of Bitcoin in the broader cryptocurrency market is continually expanding, becoming a major support force. The total market capitalization of the entire cryptocurrency market has reached $2.31 trillion, reflecting the overall strength of the industry. Moreover, the Crypto Fear and Greed Index indicates market sentiment is in the "Greed" zone, with a score of 72 out of 100, suggesting that investors generally hold an optimistic view of market prospects.