Bitcoin Reaches $70K as ETF Inflows Continue to Grow

Bitcoin has surpassed $70,000, marking its highest price since June, as US based ETFs have collectively exceeded $22 billion in total lifetime net inflows.

Source: en.bitcoinsistemi.com

Bitcoin recently surpassed the $70,000 milestone for the first time since June 10, following two consecutive weeks of significant inflows into U.S. spot Bitcoin exchange-traded funds (ETFs). On October 28, the cryptocurrency experienced a 3% surge, reaching a high of $70,150 before retracing slightly below the $70,000 mark, according to the latest data. This surge in price was accompanied by a notable rise in ETF inflows, signaling growing institutional interest. For the week ending October 25, Bitcoin funds saw inflows totaling $920 million, bringing the year-to-date figure to an impressive $25.4 billion.

In the preceding week, ending on October 18, the 11 U.S. spot-based Bitcoin ETFs recorded more than $2.1 billion in net inflows, as reported by Farside Investors. This steady stream of capital into Bitcoin funds has been a driving force behind the price rally, indicating that institutional investors continue to see value in the cryptocurrency despite market volatility and regulatory challenges.

Several crypto analysts and traders have pointed out that Bitcoin has recently experienced a golden cross on its price chart. A golden cross is a bullish technical pattern where the 50 day moving average crosses above the 200 day moving average, which historically has signaled the potential for a sustained price breakout. This technical signal, combined with the strong inflows into Bitcoin ETFs, has reinforced the optimism among market participants that the cryptocurrency could soon test new all time highs.

However, Bitcoin's price hasn’t been without turbulence. On October 25, it briefly dipped to a local low of $66,510 following reports that the U.S. Department of Justice was investigating stablecoin issuer Tether. The news created some uncertainty in the market, as Tether plays a significant role in the crypto ecosystem, particularly in providing liquidity across exchanges. Despite this temporary setback, Bitcoin quickly recovered its losses and resumed its upward momentum.

Political developments in the United States have also played a role in Bitcoin's recent price action. The cryptocurrency saw renewed bullish sentiment after Republican candidate Donald Trump gained over 32 percentage points on Vice President Kamala Harris in the lead-up to the November 5 U.S. presidential election, according to data from Polymarket. Although Trump’s momentum in the betting markets has been strong, polling data from FiveThirtyEight shows a closer race, with Harris maintaining a narrow 1.3 percentage point lead over the former president. Market participants have speculated that Trump's rising chances could be seen as favorable for Bitcoin, given his administration's more hands-off approach to financial regulation compared to current U.S. policies.

Geopolitical factors have also contributed to Bitcoin's price rise. Specifically, the cryptocurrency's recent rally coincided with a moment of relative calm in the Middle East, as Iran chose not to retaliate against Israel following its October 26 attack. The absence of immediate escalation in the conflict likely provided a stabilizing factor for risk assets, including Bitcoin.

As of now, Bitcoin is just 5% shy of its all time high of $73,679, which was reached on March 13. It is also trading at its highest level since mid May, having broken out of a prolonged range bound trading pattern where it fluctuated between $55,000 and $65,000. This latest rally has reignited optimism among traders and investors that Bitcoin could soon test and potentially surpass its previous record, driven by a combination of technical strength, institutional demand, and favorable macroeconomic conditions.

Overall, Bitcoin’s recent price action has been supported by a confluence of factors, including strong ETF inflows, bullish technical patterns, political developments, and global geopolitical stability. As the cryptocurrency continues to hover near its all time highs, all eyes are on whether it can maintain its momentum and break new ground in the weeks ahead.

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