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Bitcoin is trading above $70K for the first time in over seven months as investors eye potential bullish signals driven by macroeconomic factors and increased capital inflows.
What’s the scoop?
- ETF Momentum: The SEC's approval of spot Bitcoin ETFs in January has supported Bitcoin’s price throughout 2024.
- Fed Policy Impact: Anticipated rate cuts from the Federal Reserve, potentially down to 4.5%-4.75% on November 7, are further buoying assets.
- Political Influence: Election polls reveal a close race between Kamala Harris and crypto advocate Donald Trump, contributing to Bitcoin’s positive outlook.
- Institutional Investment: October crypto inflows totaled $3.4B, with Emory University disclosing a $15M stake in Grayscale's Bitcoin Trust.
Bankless Take:
The current convergence of U.S. election dynamics and favorable Federal Reserve policy signals a potentially bullish phase for Bitcoin. Republican traction in the polls and a surge in spot ETF inflows have intensified buying pressure, bolstering Bitcoin as the election nears. However, while current election dynamics may lean in Bitcoin’s favor, none of this price action may hold weight until a candidate is officially crowned. If Bitcoin’s rally stems solely from the anticipation of a Trump victory, which doesn’t come, gains could be short-lived and at risk of swift reversal in the short term. All in all, we have about a week until we’ll know for sure if the political catalyst holds weight.
ETF holdings are breaking out, before Bitcoin price pic.twitter.com/pSzAbm8Jpp
— Charles Edwards (@caprioleio) October 28, 2024
