Bitcoin is currently testing the $68,000 level, breaking past this point for the third time in just a few hours and currently trading at $68,100. The price is holding steady, supported by a few positive developments that are driving renewed optimism in the crypto market.
Trump’s Favorable Odds and Central Bank Moves
One key factor boosting sentiment is the shifting political landscape in the U.S. Donald Trump’s chances of winning the upcoming presidential election have improved, with odds showing him as a favorite by 22%. According to Polymarket, Trump leads with 61% versus 39% for Harris. This shift has created a sense of market stability, as some see Trump’s policies as favorable for Bitcoin.
Meanwhile, central banks are making moves that could support further gains. The European Central Bank (ECB) today announced interest rate cuts, and there’s speculation that the Federal Reserve (FED) may follow suit next month. Lower interest rates can weaken traditional currencies, potentially driving more investors toward Bitcoin as a hedge.
Strong Inflows Into Bitcoin ETFs
Bitcoin ETFs in the U.S. have been performing strongly this week, bringing in $1.85 billion so far. This steady buying shows that institutional interest is still growing, helping to keep Bitcoin’s price solid at its current levels. If this trend continues, it could support a further push upward.
On-Chain Data Points to Positive Trends
Looking at on-chain data, there are several encouraging signs. First, there’s been an increase in stablecoins being deployed on exchanges, suggesting more capital is ready to flow into Bitcoin. Additionally, open interest has hit a record $20 billion, which indicates increased activity and confidence in the futures market. Another promising metric is that miner revenue has bottomed out, potentially reducing selling pressure from miners and helping to support higher prices.
‘Uptober’ is Back On?
As we move into the second half of ‘Uptober‘, many are hoping for a repeat of past trends. Analyst Jelle shared his thoughts on X, noting that most of Bitcoin’s gains in October tend to happen between the 20th and 30th of the month. He said, “The ‘bull market summer chop’ phase has historically led to higher prices. In the past years, #Bitcoin has broken out of these summer ranges between the 20th and 30th of October. Looks like this year could play out very similarly once more. Bring on price discovery.”
The 'bull market summer chop' phase has historically led to higher prices.
In the past years, #Bitcoin has broken out of these summer ranges between the 20th and 30th of October.
Looks like this year could play out very similarly once more.
Bring on price discovery. pic.twitter.com/zOHxeJ3C8V
— Jelle (@CryptoJelleNL) October 18, 2024
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