Strong increases in the cryptocurrency market this Tuesday, October 29. Bitcoin rises strongly by more than 4% and exceeds $71,000 for the first time in four months.
The bitcoin rally also boosted altcoins with increases of more than 14% led by Dogecoin, Shiba Inu (10.3%) and Bitcoin Cash (8.2%).
Why Bitcoin is going up
According to analysts, this sudden rebound occurs at the confluence of several factors. One of them is a new cycle of rate cuts by major central banks except the Bank of Japan, combined with considerable monetary and fiscal stimulus by China; the influence of large capital inflows on exchange-traded funds (Bitcoin Spot ETFs), which recently posted their best week since July; and increasing confidence that Republican Donald Trump, most proscribed candidate, is the winner in the US elections on November 5.
Likewise, the movements of the queen cryptocurrency are in line with its historical trend in October, your month traditionally more bullish: lukewarm start, second week of consolidation and second half of strong increases. So far this month, bitcoin has already risen more than 10% after falling sharply in the early stages of the month.
‘Slow, slow and then suddenly’ is the mantra we are seeing more and more, not only in cryptocurrencies, but also in gold, where market participants are progressively using them to express what has become a protection trend. against devaluation,” said Chris Weston, research director at Pepperstone.
According to this expert, l“Fiscal recklessness” in the US, Japan and other developed market governments is “the core” of this strategy. “While the lack of interest in balancing future expenses with income is not new, the idea of positioning portfolios to hedge the growing threat of devaluation, once seen as an isolated stance, is gaining traction and, in the case of bitcoin, appears that the persecution is underway,” he points out.
“The obvious question is whether this trend can continue and reach a new all-time high, which is not far away. In my opinion, this is not a trend to bet against at this time, as BTC has a history of long-lasting price trends. It seems that unless Trump’s odds in the betting markets decrease dramatically, the push towards BTC and crypto in general will continue, especially if the ‘man who wants to make America the home of crypto’ maintains his expansionary fiscal approach. “Weston noted.
Movements are expected due to the presentation of the balance of the “Big Tech”
On the other hand, experts remember that the leading cryptocurrency has been closely correlating with the risk assets, especially with the technological stocks and with the selective Nasdaq. Therefore, investors should be very attentive to the business results that are published in the coming days, since any disappointment or surprise could cause a turnaround in prices. Alphabet (parent company, Google) will announce its figures this Tuesday at the close of trading on Wall Street, while Microsoft and Meta will do so on Wednesday and Amazon and Apple on Thursday.
“Any ‘rally’ in the risk market could favor its growth. The recent synchronization with risk assets and the support of onchain data provide positive signals for investors,” said Javier Molina, senior market analyst at eToro.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
