Bitcoin rose to a high of $66,000 in the past 24 hours, breaking weeks of stagnation as the broader crypto market showed signs of recovery.
October is historically a strong month for investors, with gains of up to 60% and an average return of 22%. Nevertheless, the market has remained stable in recent weeks, leading to a more cautious outlook among investors.
However, yesterday’s upward move has revived optimism surrounding the ‘Uptober’ story, as market analysts highlight why the top assets’ rally could continue.
According to Crypto Slates According to data, Bitcoin’s price has dropped slightly to $65,632 at the time of writing.
American elections
A major factor driving this renewed momentum is the growing perception that both leading US presidential candidates – Vice President Kamala Harris and former President Donald Trump – are pro-crypto. This belief suggests that the crypto market could benefit regardless of the election outcome.
Vice President Harris recently announced plans to create a regulatory framework for digital assets, aiming to protect retail investors while promoting economic inclusion, especially in minority communities.
On the other hand, Trump has positioned himself as a strong advocate for Bitcoin and cryptocurrencies, making pro-crypto statements during his campaign.
Blockchain-based prediction platform Polymarket shows that Trump has a 56.2% chance of winning the upcoming election, while Harris is at 43.4%.
Despite the election uncertainty, leading institutions like Galaxy Digital believe Bitcoin will remain unaffected no matter who wins.
BlackRock CEO Larry Fink echoed this sentiment, stating that Bitcoin is poised to rise regardless of the election outcome. He emphasized that Bitcoin’s growth is driven more by liquidity and transparency than by regulation or political leadership.
Other important drivers
Other potential drivers behind Bitcoin’s recent performance include changing market sentiment and global economic factors.
In an October 15 remarkTrading firm QCP Capital noted that disappointment over China’s latest economic stimulus measures may have prompted some investors to divert money from Chinese stocks to Bitcoin.
China’s attempts to revive its economy have been disappointing, leading many to question the effectiveness of its anti-deflation policies. This uncertainty has drawn further attention to Bitcoin as an alternative.
Furthermore, the delay in repayments to creditors from the Mount Gox exchange by another year has allayed concerns about a sudden influx of Bitcoin supply flooding the market.
Geopolitical risks also appear to be waning, with reports suggesting Israel may hold off on attacking Iran’s crude oil and nuclear infrastructure. This easing of tensions could provide further stability to global markets.
QCP Capital also noted that the current lack of key inflation or labor data would allow the crypto market to rise with lower risk premiums.