Bitget Research Bitcoins Surge Driven by More Than Just ETFs
Ryan Lee, the lead analyst at Bitget Research, has noted that while Bitcoin exchange-traded funds (ETFs) significantly contribute to the growing demand for Bitcoin, there are several other factors at play that are fueling its momentum.
Since the launch of spot Bitcoin (BTC) ETFs in the U.S. in January 2024, the market has experienced substantial inflows. These investment vehicles have amassed over $24 billion in net inflows, with a remarkable $5.4 billion coming in October alone.
However, Lee informed crypto.news that the bullish trend of Bitcoin cannot solely be attributed to ETFs. The cryptocurrency also successfully retested the $73,000 level, reflecting a strong recovery.
**Political and Technical Drivers Behind Bullish Sentiment**
Lee pointed out that the upcoming U.S. presidential election serves as another factor propelling Bitcoin’s rise. Both leading candidates, Donald Trump and Kamala Harris, have expressed their support for more transparent regulatory frameworks for digital assets. While Trump has taken a more direct approach, Lee anticipates that whichever candidate wins will likely adopt a favorable attitude toward the crypto industry. This has further enhanced market confidence in Bitcoin.
In addition to political influences, Lee emphasized the importance of technical indicators. He highlighted the recent formation of a golden cross pattern, which occurred on October 27 when Bitcoin’s 50-day moving average crossed above its 200-day moving average. This pattern typically signals a bullish trend in the market.
**Economic Events on the Horizon**
Looking ahead, Lee indicated that several forthcoming economic developments could impact Bitcoin’s performance throughout November. He noted that the Federal Reserve’s interest rate decision on November 7 is crucial; a potential 25-basis-point cut could enhance market liquidity, benefiting cryptocurrencies.
Moreover, he pointed out that the CME’s BTC open interest recently hit an all-time high, indicating strong interest in Bitcoin from the futures market. Continued inflows into Bitcoin ETFs are also expected to provide ongoing support for the asset.
Additionally, a potential acquisition of BTC by Microsoft is still a possibility. If Microsoft’s board approves such a purchase, Lee believes it would be a significant milestone for Bitcoin’s adoption and would attract considerable institutional interest.
With these various factors in play, Lee forecasts that Bitcoin’s price will likely fluctuate between $66,000 and $75,000 in November, although he anticipates that market volatility will remain elevated.
As of now, Bitcoin has seen a 4% decline over the past 24 hours, trading at $69,350. Its market capitalization has dipped below $1.4 trillion, with a daily trading volume of $45 billion.
**BTC Price Update | Source: crypto.news**
One of the primary reasons for the recent correction in BTC prices could be the series of gains observed over the last week, which pushed Bitcoin into overbought territory. Currently, the Relative Strength Index (RSI) for BTC is around 32, suggesting that the leading cryptocurrency is nearing an oversold condition.
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