What caused Bitcoin to surge and surpass $71,000 on October 29, 2024?
Today (October 29), the Crypto community was surprised by the strong breakout of BTC (Bitcoin) from the hard resistance zone of 70,000 USD for the first time since late July.
As of writing, BTC is currently trading around $71,300 — up nearly 6% over the past 24 hours — with trading volume surging above $47 billion. BTC is still surging strongly this morning, and it’s likely that the rally won’t stop there.
In this article, let's review with TradeCoinVN the 2 main reasons why BTC exploded violently on October 29!
1. Donald Trump's chances of winning the US presidential election are increasing
An important factor contributing to the strong increase in BTC in the past 2 weeks is the increasing winning rate of Mr. Donald Trump (Republican candidate) - far surpassing Ms. Kamala Harris (Democratic candidate).
According to data updated as of October 29 by the prediction market Polymarket, Mr. Trump’s odds of winning are at 66.1% — nearly double Ms. Harris’s 33.8%. In September, Ms. Harris had a narrow lead, but Mr. Trump has begun to break away strongly since early October.
Polymarket has now attracted more than $2.6 billion in “bets” on who will win the 2024 US presidential election. According to on-chain analytics firms like Arkham and Lookonchain, many whales have spent millions of dollars betting that Mr. Trump will become US president.
According to James Butterfill (head of research at CoinShares), Mr. Trump's election as US president will be very beneficial for BTC in particular and the Crypto market in general. Mr. Trump is known for having a favorable view of the Crypto market when he publicly praised BTC at the Bitcoin 2024 Conference, as well as his family is backing a DeFi project called World Liberty Financial ($WLFI).
The famous bank Standard Chartered predicts that BTC could hit $73,000 by the US presidential election day (November 5). The election is only about a week away and the bank's prediction is entirely possible.
2. Capital continues to flow into Spot BTC ETFs in the United States
Another important factor that has helped BTC explode recently is the strong capital inflow into Spot BTC ETFs in the United States.
It all started on October 11, when the inflow into BTC ETF suddenly reached $253.8 million while BTC was still trading in the $60,000 area.
Since October 11, nearly $3.9 billion has been poured into BTC ETFs. As usual, the inflows into BTC ETFs have also been proportional to the strength of BTC, as BTC has increased by nearly 20% over the past 18 days.
According to data from Farside Investors, Spot BTC ETFs saw net inflows of $477.4 million on October 28. There were no net outflows, while BlackRock’s IBIT fund continued to carry the day with positive inflows of $313.2 million.
2. Capital continues to flow into Spot BTC ETFs in the United States
Another important factor that has helped BTC explode recently is the strong capital inflow into Spot BTC ETFs in the United States.
It all started on October 11, when the inflow into BTC ETF suddenly reached $253.8 million while BTC was still trading in the $60,000 area.
Since October 11, nearly $3.9 billion has been poured into BTC ETFs. As usual, the inflows into BTC ETFs have also been proportional to the strength of BTC, as BTC has increased by nearly 20% over the past 18 days.
According to data from Farside Investors, Spot BTC ETFs saw net inflows of $477.4 million on October 28. There were no net outflows, while BlackRock’s IBIT fund continued to carry the day with positive inflows of $313.2 million.
