Bitcoin rises above 70k – Will BTC reach a new ATH?

At the beginning of the month, we suggested that Bitcoin would rise to 70k in October. With two days to spare, the world's largest cryptocurrency surpassed that target, reaching a high of 71,500. This now opens the door to the possibility of a fresh all-time high this week, potentially even before the end of October. 

At the time of writing, Bitcoin has already risen to a four-month high of 71,500, meaning it's just over 3% shy of its all-time high. Thanks to several tailwinds and an upbeat market mood a new record high this week looks well within the realm of possibility. 

Bitcoin has risen sharply on growing bets that Trump will win the upcoming US election, on positive technicals and FOMO. 

US election boost 

The world's largest cryptocurrency has been boosted by growing speculation that Republican candidate Donald Trump will beat Democrat nominee Kamala Harris in the November 5th election. 

While Trump has gained ground against Harris in recent polls, online prediction markets favour a Trump victory. Trump has positioned himself as the pro-crypto candidate throughout his campaign, promising crypto-friendly regulation, which could bode well for the industry. 

Technical picture 

Meanwhile, Bitcoin's technical picture has also become more encouraging as the cryptocurrency breaks out of its seven-month descending channel and as the 50 SMA crosses above the 200 SMA in a bullish golden cross formation. This brings Bitcoin's record high of 73,750, reached back in March, back into focus. There are blue skies above, so the next logical level to target would be 80k, ahead of 100k. 

FOMO 

Several other data points suggest that fear of missing out (FOMO) could also be boosting the price.  

Firstly, the Bitcoin Fear and Greed index is at 72, up from 70 last week and 63 a month ago. The index is at around the highest level since July and shows that the market is in a state of greed. 

Secondly, data from IntotheBlock shows that 98% of Bitcoin holders are sitting in profits while just 1.26% are at break-even point. Typically, when wallet profitability increases, holders become more willing to hold their Bitcoins rather than sell, boosting investor confidence and attracting new buyers. 

Institutional demand surges 

Bitcoin spot ETFs recorded their highest inflows in two weeks on October 28th. According to So So Value, yesterday's inflows were worth $479 million, with BlackRock once again seeing the largest share of three with $315 million in inflows. Blackrock's Bitcoin holdings have now surpassed 400,000 coins, and the asset manager is on track to flip Satoshi to become the largest Bitcoin holder. Bitcoin ETFs have reported $3 billion in net inflows in just two weeks, highlighting the strength in institutional demand. 

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