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Qadir AK
Qadir AK
Author
Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Oct 29, 2024 05:49 UTC
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BTC at $71K: Top 4 Reasons Why Bitcoin Price is Up Today
Bitcoin price surged 5% in the past 24 hours, reclaiming the $71k level and retesting its all-time high.
This Bitcoin price pump triggered a broader altcoin rally, increasing the total crypto market cap by 3%.
Factors contributing to the Bitcoin rally include increased whale demand, declining exchange supply, and positive market sentiment.
Bitcoin (BTC) has jumped 5% in the past 24 hours, climbing above $71,000 for the first time since early June. The flagship cryptocurrency is now testing a critical resistance zone between $71,000 and $73,000, close to its all-time high (ATH) from earlier this year.
This Bitcoin price boost has lifted the broader crypto market, raising the total market cap by 3% to approximately $2.51 trillion during the early Asian trading hours on Tuesday, October 29. As a result, more than $241 million in short positions were liquidated over the past day, primarily affecting traders on Binance and OKX.
Is this the start of a new bull run? Read on to know more.
What’s Driving Bitcoin’s Latest Rally?
High Demand from Whale Investors
Today’s surge beyond $71,000 is mainly driven by strong demand from whale investors who are hedging against global economic uncertainty and fiat devaluation, spurred by ongoing geopolitical tensions. Data shows a notable shift in Bitcoin supply, with more than 7,000 BTC withdrawn from centralized exchanges in the last 24 hours.
The US spot BTC ETF issuers, led by BlackRock’s IBIT, are the largest buyers of Bitcoin. On Monday, the US spot BTC ETFs registered more than $479 million in net cash inflow.
Short Squeeze Impact
Bitcoin’s latest rally has triggered a wave of short liquidations, forcing many traders to close positions and pushing prices higher in a short squeeze. This movement has increased whale activity, further accelerating the upward trend.
Favorable Technical Aspects
Popular trader Peter Brandt noted that Bitcoin recently closed above a key descending trendline on a logarithmic scale, marking a potential trend shift. According to Brandt, Bitcoin’s rally above July’s peak has confirmed a new bullish trend.
With the 50- and 200-day moving averages (MAs) forming a “golden cross,” he suggests BTC could soon target $94,000.
Trump Takes the Lead
With next week’s U.S. 2024 presidential and congressional elections approaching, Donald Trump, the crypto community’s favored candidate, leads significantly in the polls. Meanwhile, Wall Street analysts expect the Federal Reserve to cut its benchmark interest rate next week to support economic growth—potentially driving more investors to Bitcoin.
As October nears its end, Bitcoin’s bullish momentum is boosting confidence across the crypto market. This rally has drawn comparisons to gold, which is currently in a price discovery phase, hinting at similar potential for BTC.
Bitcoin’s current rally has set an optimistic tone for November, as traders watch for election results and possible policy changes that could further influence the market.
Could Bitcoin be the hedge against inflation that many believe it to be? Join the conversation.
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