Source: Cryptoast
The price of Bitcoin (BTC) has significantly increased. For a brief while, it reached $66,400, the highest level since July 30th. Crypto-linked companies have seen significant gains as a result of this increase, which has rekindled hope in the crypto markets. Analysts continue to dispute the top cryptocurrency as it approaches its all-time high. Will this rally be the start of a long-term bull run?
Crucial Highlights:
Bitcoin Rises to $66,000 in October: The price of bitcoin saw a notable increase on October 14 and crossed the $66,000 threshold. It is still unclear, though, if this surge represents a real trend turnaround or just another brief uptick in the erratic price movement of Bitcoin.
Futures markets were crucial to the rally: The increasing velocity of the Bitcoin price was significantly affected by activity in the futures markets. During this time, the increase in funding rates indicates that short sellers were under pressure. Open interest also rose, indicating that short sellers had to cover their bets. This contributed to Bitcoin’s dramatic price increase.
US Bitcoin ETF Inflows Hit Records: With huge inflows of more than $556 million into US-based spot Bitcoin ETFs, the rally took place on October 14. Since June 2024, this was the largest inflow in a single day.
Important Resistance Levels Remain: There is strong resistance above the $66,000 mark, even with the recent spike in the price of Bitcoin. The existence of sizable sell orders in the market is indicative of this.
The adoption of Bitcoin is still being driven by institutional interest: The consistent influx into Bitcoin ETFs demonstrates the continued trend of institutional crypto adoption. For investors looking to gain exposure to Bitcoin without actually possessing the commodity, exchange-traded funds (ETFs) have emerged as a popular option. Bitcoin ETF inflows have far surpassed those into gold-based products.
Prospects for the Future and Possible Impetus
Though certain experts advise caution, the latest surge is encouraging. Cointelegraph was informed by JJ, HighStrike’s head of crypto alternatives and derivatives, that the September highs remain a resistance level. The Coinbase order book shows many requests over that threshold.
Nonetheless, a number of aspects might support ongoing positive growth:
Event of 2024 Halving: The imminent decrease in Bitcoin’s mining incentive, scheduled for 2024, has traditionally preceded bull runs.
US election: The 2024 US presidential election could have an impact on cryptocurrency legislation and market sentiment.
The chief investment officer of the cryptocurrency hedge fund ZX Squared Capital, CK Zheng, thinks that in the fourth quarter, Bitcoin might reach its highest point ever, $73,738.
