Bitcoin’s price has picked up momentum once again, buoyed by a combination of favorable economic factors, ETF inflows, and anticipation around the US election. This upward shift has the market buzzing about Bitcoin’s potential rally in the coming weeks.
Key Factors Fueling Bitcoin’s Rise
Several critical factors appear to be pushing Bitcoin’s price higher. From new job data to ETF inflows, here are the main drivers behind this recent BTC rally.
Boost from US Jobs Data
Recent U.S. job data has provided a boost to market sentiment, especially in the crypto space. The Labor Department reported a rise of only 12,000 in October’s non-farm payrolls, the slowest increase since late 2020, and well below the expected 110,000. This modest job growth has strengthened the case for a 25-basis-point Federal Reserve rate cut in the coming weeks, likely supporting the BTC rally.
The market now expects the Fed to announce rate cuts both next week and again in December. Typically, lower interest rates drive up market sentiment, encouraging traders to take on more risk—a promising sign for Bitcoin and other cryptocurrencies.
US Election Sparks Investor Confidence
With the US election approaching, market sentiment could be significantly impacted. Current polling data shows a slight edge for Donald Trump, with a 57.7% chance of winning, according to Polymarkets. Bitcoin is expected to benefit regardless of the outcome, though some speculate that a Trump victory may bring added momentum to the BTC rally, given his supportive stance on cryptocurrency.
The election, set for November 5, could boost market sentiment further, potentially driving Bitcoin’s price higher.
Strong Inflows to Bitcoin ETFs
Bitcoin ETFs have seen a strong inflow of funds recently, which is driving investor optimism. Inflows into the US Spot Bitcoin ETF totaled $2.22 billion this week, with only a small outflow on Friday. BlackRock’s Bitcoin ETF was the largest contributor to this figure, reflecting growing institutional interest in the crypto sector.
This rise in Bitcoin ETF inflows suggests that Wall Street investors are increasingly shifting their focus toward digital assets, further strengthening market sentiment and contributing to Bitcoin’s current rally.
October’s “Uptober” Rally Boosts Sentiment
Bitcoin’s October rally, often referred to as “Uptober,” is another reason for the current bullish sentiment. Over the past few years, Bitcoin has shown positive performance during October and has historically continued this trend through the last quarter of the year. This pattern has contributed to investor confidence, with many expecting Bitcoin to reach a new high by the year’s end.
Bitcoin Price Prediction: Will BTC Hit New Highs?
Bitcoin is trading slightly higher today at $69,638, with a 24-hour high of $71,559. Analysts forecast that BTC could reach as high as $86,764 this month. Derivatives data from CoinGlass also shows that Bitcoin Futures Open Interest remains steady, signaling that investors may be waiting for further clarity before committing larger amounts to the market.
According to a recent Forbes report, Bitcoin showed less volatility than stocks like Tesla and AMD in October, refuting previous claims about Bitcoin’s volatility. With the combination of ETF inflows, economic data, and key market events on the horizon, many analysts see continued potential for Bitcoin’s rally in the coming days.
