It’s a party in crypto land, with a market turning green and various projects showing significant increases. For example, the Bitcoin (BTC) price rose by 5.8% in the past 24 hours and Ethereum (ETH) recorded a gain of 6% in the same period. The big question is what is driving these increases and whether this positive trend will continue.
Recordinstroom in Bitcoin Spot ETF’s
Over the past two weeks, Bitcoin Spot exchange-traded funds (ETFs) saw record capital inflows, totaling a whopping $3.8 billion. On October 29 alone, $479 million was invested.
This inflow indicates that institutional investors are increasingly positioning themselves in the digital currency. If this trend continues, it would be a positive development for the market, as institutional investors have enormous financial resources that can provide stability.
Influence of the American presidential elections
A second factor behind the price increases appears to be the approaching 2024 US presidential elections. The election date is getting closer, and investors are speculating on the possible effects of this on the crypto industry.
There is an expectation that a new term under Donald Trump could have a very positive impact on the crypto market. Trump currently has a significant lead in the polls over his opponent Kamala Harris. What will happen under a possible Harris administration is less clear, as she has not yet taken a clear position on crypto.
A “perfect storm” for Bitcoin
According to analysts at the crypto exchange Bitfinex, a “perfect storm” is currently brewing for Bitcoin. This unique set of circumstances – including speculation surrounding the US elections, geopolitical uncertainties and macroeconomic factors – could significantly influence the market, according to the analysts. The seasonal trend also plays a role; Historically, the fourth quarter in years with a halving is often bullish for BTC.
Source: https://newsbit.nl/waarom-stijgen-de-crypto-koersen-zo-hard-vandaag/
