Bitcoin traders are eyeing a $70,000 target, US stock Bitcoin concept stocks climbBitcoin traders are once again targeting a $70,000 price, even after a short-term dip in the cryptocurrency market last weekend due to news about Tether stablecoin. US cryptocurrency exchange-traded funds (ETFs) continue to see strong inflows
Bitcoin traders are eyeing a $70,000 target, US stock Bitcoin concept stocks climb
Bitcoin traders are once again targeting a $70,000 price, even after a short-term dip in the cryptocurrency market last weekend due to news about Tether stablecoin. US cryptocurrency exchange-traded funds (ETFs) continue to see strong inflows. Stephane Ouellette, co-founder and CEO of FRNT Financial, said, "This represents a continuation of the trend we have observed in the cryptocurrency market recently. We are in the early stages of a global liquidity cycle, and we expect lower interest rates and fiscal policy liquidity to drive Bitcoin higher in the long term."
The cryptocurrency market saw a dip last weekend due to reports that US authorities are investigating Tether Holdings Ltd. for potential violations of sanctions and anti-money laundering rules. Tether spokesperson said the company is unaware of any investigation. Stablecoins such as Tether play a vital role in the cryptocurrency market, acting as a bridge between fiat currency and cryptocurrencies. Users can utilize them to exchange fiat currency for cryptocurrencies like Bitcoin and vice versa. Moreover, stablecoins like Tether are commonly used as collateral for cryptocurrency loans. Tether is the cryptocurrency with the highest trading volume globally.
With the US presidential election approaching, market enthusiasm for Bitcoin is growing. According to a CoinShares report, inflows into digital assets totaled $910 million last week, bringing the year-to-date inflow to $27 billion, nearly triple the record levels of 2021. James Butterfill, head of research at CoinShares, said, "We believe that the current Bitcoin price and capital flows are strongly influenced by US politics, and the recent surge in inflows may be linked to rising Republican polls."
The report also noted that almost all inflows were concentrated in Bitcoin, while Ethereum saw outflows of $35 million last week, the largest outflow among all assets during the same period.
In addition, options traders are increasing their bets on Bitcoin hitting a new high of $80,000 by the end of November, regardless of the election outcome. Bitcoin's implied volatility for options expiring around the November 5th election date is higher, suggesting a bullish leaning in trader bets. These options grant the buyer the right to purchase Bitcoin at a higher price.
In March this year, Bitcoin surged to an all-time high of $73,797 driven by optimistic sentiment surrounding ETFs. It then fell over 30% in early August and entered the current bull run.
"Last week, billionaire hedge fund manager Paul Tudor Jones cited Bitcoin as a hedge against inflation, especially amidst growing expectations of fiat currency devaluation," Ouellette added. "This dynamic will continue to benefit Bitcoin, and the long-term growth potential will expand as new market participants incorporate Bitcoin into their portfolios in the next market cycle."
On Monday, Bitcoin concept stocks collectively climbed higher. Coinbase (COIN.US) rose over 5%, MicroStrategy (MSTR.US) gained nearly 9%, BitDigital (BTBT.US) jumped over 9%, and MARA Holdings (MARA.US) surged over 11%.
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