LONDON, ENGLAND – OCTOBER 23: A visual representation of the digital Cryptocurrency, Bitcoin on … [+]
Bitcoin prices rose sharply today, climbing to their loftiest value since late last month as a wide range of variables drove gains.
The world’s most valuable cryptocurrency in terms of total market value rallied to almost $66,500, according to Coinbase data provided by TradingView. At this point, it had appreciated close to 6.4% in under 24 hours after falling to nearly $62,450.00.
Several analysts commented on these developments, highlighting the factors that helped trigger this bullish activity.
Joshua de Vos, research lead at CCData, for example, emphasized the key role played by political developments.
“A key factor is the upcoming US Presidential Election; Donald Trump’s improved odds—coupled with his pro-crypto stance—have ignited speculation around Bitcoin and the broader digital asset sector,” he stated.
“This political climate, alongside significant growth in traditional equities, has contributed to a shift toward risk-on behaviour among investors,” de Vos added.
The analyst also spoke to market history, noting that October has generally been a good month for the world’s most prominent digital currency.
“October has also historically been a strong month for Bitcoin, with average monthly returns of 28.79% since 2010, making it the third-best month on record,” he specified.
Marc P. Bernegger, cofounder of crypto fund of funds AltAlpha Digital, also weighed in on what drove the latest gains in bitcoin.
“There is a big inflow of buy orders for Bitcoin ETFs,” he emphasized.
“Additionally Mount Gox repayments were postponed which was not expected,” the analyst added.
“I personally think that the announced economic stimulus by China is the main driver of todays gains,” he stated, speaking to the East Asian nation’s plans to jumpstart sluggish economic growth.
Tim Enneking, managing partner of Psalion, also offered his take on what caused bitcoin’s latest upside.
“The market dynamic looked like two short squeezes, one right after the other, but that would be unusual,” he stated.
“My only theory is that it’s a combination of: (1) S&P 500 setting a new ATH and inspiring risk-on assets, (2) the market being fed up with range-bound trading, (3) a self-fulfilling prophecy of “uptober”, (4) relief with some of the Mt. Gox distributions being pushed into 2025, (5) and the small recovery Trump appears to have made after Harris’ euphoria has fallen off,” Enneking clarified.
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and SOL.