- Bitcoin (BTC) climbed above $65,000, marking a 4% increase in 24 hours, influenced by positive movements in the S&P 500 and expectations of stimulus in China.Trading firm QCP Capital highlighted similarities between current price actions and those seen before U.S. elections in 2016 and 2020, suggesting a pattern where Bitcoin sees significant gains in the weeks leading up to the election, fueling ‘Uptober’ optimism.The S&P 500 also opened at a new high, indicating a bullish market trend, which often correlates with cryptocurrency performance.
In the last 24 hours, Bitcoin has increased by 4%, according to the data available, and the broader CoinDesk 20 (CD20) index, which follows the largest tokens, has risen by 3.1% as well.
As I analyze the market, I noticed that the S&P 500 (SPX) experienced an uptick of 14.8 points or 0.25% at the opening bell, reaching 5,829.81. This positive movement is in anticipation of a busy week ahead, filled with corporate earnings reports and economic data, as reported by Reuters.
Bitcoin experienced a surge from around $62,000 to $65,000 since the early hours of Monday in Asia, resulting in the liquidation of over $80 million worth of Bitcoin and Ether short positions – essentially bets against these tokens. This initial rally was fueled by renewed optimism about potential future stimulus for the Chinese market, which historically has a positive impact on riskier assets such as cryptocurrencies.
According to QCP Capital, this action resembles Bitcoin’s price fluctuations prior to the U.S. elections in both 2016 and 2020.
Likewise, for six months in 2020, Bitcoin remained in a relatively stable price range. It wasn’t until three weeks before the U.S. Election that it began to surge significantly from around $11,000, peaking at $42,000 by January.
Traders commented today that the recent market surge has brought a flicker of optimism back into play, as the positive trend of ‘Uptober’ (a traditionally bullish period in October) seemed to be dwindling.
Since 2013, October has been profitable for investors more often than not, with exceptional gains reaching up to 60% and an average return of 22%. This makes it a particularly favorable month for investments. However, in the last fortnight, prices have generally held steady, which has somewhat dampened investor optimism.
On September 30th, the value of Bitcoin hovered approximately at $63,330. As such, over the course of the past month, the leading cryptocurrency has experienced only a slight increase in price.
According to an examination by CoinDesk, it’s common for the majority of gains in October to occur during the latter part of the month. Typically, significant price surges of up to 16% can be observed post-October 15th.
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2024-10-14 17:35