Bitcoin Hits New Highs, Breaks Through $70,000 Mark, Fed Rate Cuts and ETF Inflows Key DriversBitcoin is surging towards its all-time high. On October 30th, Bitcoin firmly established itself above the $70,000 mark, briefly touching $73,000, nearing its historical peak
Bitcoin Hits New Highs, Breaks Through $70,000 Mark, Fed Rate Cuts and ETF Inflows Key Drivers
Bitcoin is surging towards its all-time high. On October 30th, Bitcoin firmly established itself above the $70,000 mark, briefly touching $73,000, nearing its historical peak. According to Coinglass, a cryptocurrency data website, Bitcoin reached $72,300 per coin as of noon, marking a 1.91% increase over the past 24 hours. The 24-hour trading volume reached $88.871 billion, a rise of 8.32% compared to the previous day, with a market capitalization of $1.43 trillion. Over the past 24 hours, around $180 million in liquidations occurred in the market, with a majority stemming from short positions.
Compared to Bitcoin's active market, the price action of other major cryptocurrencies like Ethereum and Binance Coin appears less dynamic. Within the past 24 hours, Ethereum's trading volume decreased by 17.22%, while Binance Coin saw a slight increase of 1.53%.
In the news, with the US election nearing its final moments, the "Trump trade" continues to gain attention. Trump has publicly expressed support for the future of cryptocurrencies, leading the market to consider them as a part of the "Trump trade." Henrik Andersson, Chief Investment Officer of Apollo Capital, points out that Trump's potential victory will be a key factor determining the direction of the cryptocurrency market. If he wins the election, the upward trend in risk assets is expected to propel Bitcoin to reach $100,000 by the end of the year.
Furthermore, tech giant Microsoft Corporation is considering a Bitcoin investment. Recent filings with the US Securities and Exchange Commission (SEC) reveal that Microsoft plans to vote on a proposal to "evaluate investing in Bitcoin" at its annual meeting in December.
In the Asian market, the Hong Kong Stock Exchange announced that it will launch the Hong Kong Exchanges and Clearing Limited Virtual Asset Index Series on November 15th. This series aims to provide reliable benchmark pricing for virtual assets and support Hong Kong's development as a leading digital asset center in Asia.
Since October, Bitcoin has repeatedly challenged the $70,000 barrier, breaking through $67,000 on October 15th and exceeding $69,000 on October 21st, followed by multiple pullbacks. This marks the first time Bitcoin has crossed the $70,000 threshold in four months, and the cryptocurrency market views this level as a significant milestone.
Zhao Wei, Senior Research Analyst at OKX Research, explained to Jiemian News that this recent Bitcoin surge is driven by multiple key factors. Firstly, the Fed's significant interest rate cuts have injected liquidity into the market, boosting investor demand for inflation-hedging assets like Bitcoin. Secondly, the strong correlation between Bitcoin and the S&P 500 has allowed it to rise alongside the stock market.
The spot market's momentum has stimulated the attractiveness of related ETF products. Bitcoin spot ETF markets have witnessed consecutive inflows of funds for the past three days. Coinglass data indicates that 11 Bitcoin ETFs collectively saw a net inflow of $827 million on October 29th, marking the largest single-day net inflow in four months. Among them, BlackRock's IBIT product recorded the most significant inflow at $600 million, followed by Fidelity's FBTC with $134 million.
Overall, the Bitcoin spot ETF market has maintained a positive sentiment since October, particularly in the latter half of the month. The only day with net outflows was October 22nd, with a withdrawal of $79.1 million.
Zhao Wei further notes that the rapid expansion of the cryptocurrency and related ETF markets may lead to a gradual shift in the US regulatory stance. The growth of the cryptocurrency market and its potential impact on the traditional financial system might prompt the US government to establish a more clear and flexible regulatory framework, introducing more specific compliance and risk management measures to enhance market transparency and compliance.
Larry Fink, CEO of BlackRock, recently mentioned during the third-quarter earnings call, "We believe that Bitcoin is an asset class in its own right, an alternative to other commodities like gold."
Regarding the viewpoint that Bitcoin's investment potential is comparable to gold, Zhao Wei believes that Bitcoin and gold do share some similarities. Both are considered tools for combatting inflation, but their investment potential differs significantly. As a thousand-year-old store of value, gold exhibits lower volatility and is more suitable for long-term, stable investment strategies. Conversely, Bitcoin's greater volatility attracts investors with a higher risk tolerance.
"While Bitcoin's investment potential holds unique appeal, it cannot fully replace gold's stability. Investors need to make rational choices based on their investment preferences and risk appetite," he concluded.
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