Reached All-Time High and Retraced to 69K... "Expecting Trump Victory" [Bitcoin Now]

Last Week's Bull Market... Funds Flow into BlackRock Spot ETF
US Election Optimism Persists... Divergent Views on Rate Cuts
Rise Labs Analyst "Trump's Landslide Victory Possible"

[Image source=Yonhap News]

In the last week of October, Bitcoin prices surged past $73,000 in a rapid rally. However, just shy of $74,000, a wave of sell-offs, presumed to be profit-taking, caused the price to retreat to the $69,000 range. The optimism surrounding the U.S. presidential election, which has been a driving force behind Bitcoin's rally, is expected to remain valid until the election event just three days away.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 11:35 AM KST on the 2nd, Bitcoin was trading at $69,833.25, up 0.73% from the previous day. Compared to a week ago, it rose 4.90%, and compared to a month ago, it increased by 14.20%. The year-over-year growth rate stands at 95.77%.

Bitcoin prices started at $66,700 on the 27th of last month and climbed steeply until the 30th. On the 30th, intraday prices even surged to $73,464, nearly reaching the all-time high of $73,750 recorded on March 14. Currently, due to profit-taking and other sell-offs, the price has retreated below $70,000.

The main driver behind the Bitcoin rally sustained over recent weeks is the U.S. presidential election. Along with the U.S. election event scheduled for November 5 (local time), there is optimism about the return of former President Donald Trump, the Republican candidate, to the White House. According to BlackRock Asset Management, a global asset management firm, Bitcoin spot Exchange-Traded Funds (ETFs) saw a net inflow of $917.2 million in a single day on the 30th (local time), marking the largest daily inflow since March.

According to foreign media, analysts at Rise Labs noted, "With the increasing likelihood of a Republican landslide, optimism has grown that pro-cryptocurrency legislation will pass in Congress after the U.S. election." Former President Trump has positioned himself as the 'Cryptocurrency President' and proposed policies to make cryptocurrencies a strategic reserve asset.

Regarding the second driving force, the global trend toward interest rate cuts, opinions in the market are divided. Earlier this year, there was anticipation that central banks worldwide, including the U.S. Federal Reserve (Fed), would begin cutting rates in earnest, but this view has started to fracture. The expectation was that rate cuts would increase global liquidity and drive Bitcoin prices higher.

Proponents of additional rate cuts argue that the U.S. government's debt burden due to high interest rates has reached a critical point. Elon Musk, CEO of Tesla and a self-proclaimed supporter of former President Trump, has recently voiced concerns over the U.S. being in a "bankruptcy crisis." Anthony Scaramucci, founder of SkyBridge Capital, has similarly advocated for rate cuts due to the U.S. fiscal crisis and has promoted a bullish outlook on Bitcoin.

On the other hand, Larry Fink, CEO of BlackRock Asset Management, stated at an event held in Riyadh, Saudi Arabia, on the 29th (local time), "The U.S. Fed will not cut rates as much as the market expects this year," citing "underlying inflation (price increases) being too high." He also forecasted that the Fed would cut rates only once this year, less than the market's expectation of twice.

According to cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment, stood at 72 points (Greed) on this day. Alternative's Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investing, to 100, indicating strong optimism.