Isabella García
After dipping to $65,000 yesterday, Bitcoin price climbed back above $67,000 early on Thursday, October 24. The leading cryptocurrency is attempting to regain bullish momentum on an hourly scale, facing resistance around $69,000 over the past two weeks.
In recent months, Bitcoin has demonstrated a consistent uptrend with higher highs and higher lows, a key indicator of a rising market, particularly since the significant market downturn on August 5.
From a technical perspective, Bitcoin appears poised to enter a parabolic growth phase, driven by increased speculation among institutional investors. Historical patterns suggest that Bitcoin tends to rally strongly after a consolidation period of over 30 weeks, which began in March.
However, if Bitcoin fails to hold above the critical $60,000 support level in the short term, a bearish trend could dominate in the coming weeks.
In the longer term, the anticipated Bitcoin halving event and the ongoing mainstream adoption of digital assets are expected to drive bullish sentiment, similar to previous crypto market cycles.
Institutional Demand Boosts Bitcoin Accumulation
The demand for Bitcoin among institutional investors has surged in recent months, surpassing any other period in its history. Both new and long-term “whale” investors have been accumulating Bitcoin, viewing it as a hedge against global economic instability.
Over the past week, the total supply of Bitcoin on centralized exchanges dropped by more than 41,000, reaching a new multi-year low of about 2.39 million units. This decrease is largely attributed to significant acquisitions by US-based spot Bitcoin ETF issuers. Notably, BlackRock Bitcoin Trust (IBIT) attracted $317 million in inflows on Wednesday, with current assets under management (AUM) totaling approximately $26.24 billion.
Recently, Bitcoin’s price movement has paralleled that of gold and major stock indices. This correlation is driven by a shift in macroeconomic conditions, including interest rate cuts across key economies, which have boosted the broader crypto market’s outlook.
On Wednesday, the Federal Reserve’s Beige Book hinted at a potential rate cut in early November, following the US election. The US Fed may reduce its benchmark interest rate to strengthen the domestic economy, aligning with similar moves in Canada, China, and Europe.
Outlook for Bitcoin Price Future Amid US Political Changes
Many analysts remain optimistic about Bitcoin’s long-term performance, regardless of the outcome of the upcoming US presidential election. However, the appointment of new leaders in key agencies like the SEC and the US Treasury will be crucial to watch, as their regulatory approaches could influence the crypto landscape.
As the market awaits these potential shifts, Bitcoin’s price movement continues to be a key indicator of broader trends within the cryptocurrency industry, highlighting both risks and opportunities for investors.
