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Bitcoin price’s recent surge past $73,000 has drawn widespread attention, marking an over 8% rally within just a few days. Key factors are fueling the bullish momentum, with many expecting the rally to persist. Here’s why BTC price could remain on an upward trajectory.
1. Upcoming Presidential Election & The “Trump Trade”
The approaching U.S. presidential election is creating significant waves in the Bitcoin and crypto markets, especially with former President Donald Trump’s rise in swing state polls. Analysts at QCP Capital have noted that Trump, a pro-crypto candidate, is gaining traction in states like Nevada and Pennsylvania.
QCP: The price action for Bitcoin has been nothing short of remarkable this couple of days, rising over 8% and breaking the $73k level. The robust inflow into spot ETFs, fresh monetary easing cycles across major economies, and increasing odds of victory for crypto-friendly…
— Wu Blockchain (@WuBlockchain) October 30, 2024
QCP analysts questioned, “Will the ‘Trump Trade’ continue or will there be an unexpected turn of events?” A Trump victory is expected to boost Bitcoin price with potential of crypto-friendly policies, possibly providing more upward price support.
2. Robust Inflows into Spot Bitcoin ETFs
Spot Bitcoin ETFs witnessed a record-breaking inflow of $870 million on October 29, the highest since June 5, indicating substantial institutional interest in Bitcoin. BlackRock led the way with $642.9 million in inflows, followed by Fidelity at $133.9 million, Bitwise at $52.5 million, and Grayscale BTC Mini ETF at $29.2 million.
What a great morning,
Yesterday’s Bitcoin ETF flows were positive for $870.1 million.
Blackrock had $642.9 million of inflows, Fidelity $133.9 million, Bitwise $52.5 million, BTC (mini-ETF) $29.2 million.
GBTC managed to have outflows on a crazy day like yesterday for $17.3… pic.twitter.com/GEVtgQNE7W
— WhalePanda (@WhalePanda) October 30, 2024
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Despite the market excitement, Grayscale’s GBTC saw outflows of $17.3 million, however, the bullish momentum remains owing to the overall strong inflows. According to QCP Capital, “the robust inflow into spot ETFs” has been a critical catalyst in the recent price surge. Moreover, investors are expecting even more ETF traction as demand grows.
3. November Fed Rate Cut to Boost Bitcoin Price?
With the Federal Reserve’s November meeting approaching, the probability of a 25 basis point rate cut stands at 96.5%, with markets already pricing in an additional 25 basis point cut in December. QCP analysts highlighted, “Markets are pricing in 1.6 cuts” as the Fed looks to ease monetary conditions amid economic pressures.
A dovish stance by the Fed typically benefits Bitcoin price as it drives investors towards non-yielding assets, particularly with inflation risks and the dollar’s weakening appeal. Furthermore, if the market prices in two rate cuts this year, BTC’s bull run could register a new all-time high around $80,000, as predicted by several analysts.
4. Non-Farm Payrolls (NFP) Data
This Friday’s Non-Farm Payroll (NFP) report is also adding momentum to Bitcoin’s rise. Expected to show a drop to 110,000, which is half of last month’s number, this report will be the final major data release before the Fed meeting.
Investors view weak job market data as an additional reason for the Fed to continue rate cuts. This could further strengthen Bitcoin’s position as a hedge against economic uncertainty.
5. Tech Earnings and Bitcoin Price Action
Finally, earnings releases from five of the “Magnificent 7” tech giants—Alphabet, Apple, Meta, Amazon, and Microsoft—are expected to show earnings growth of 19-20% on average, the slowest in six quarters. Though the impact on equities remains unclear, weaker tech earnings could drive investors to seek alternative assets like Bitcoin.
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According to QCP Capital, these earnings results will serve as “key indicators…for broader market sentiment.” Furthermore, its implications that could spill over into the Bitcoin price action.
Also Read: BlackRock Buys Bitcoin Amid Price Surge