Positive Trends in the Crypto Market: What's Behind Bitcoin's Growth
Date: 2024-10-15 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
One of the key factors contributing to this growth is the resumption of capital inflows into Bitcoin ETFs. According to Coinglass, during the trading session on October 14, spot ETFs raised more than $555 million from investors, which was the largest amount since the beginning of June. These funds actually buy Bitcoin to back their shares, which opens up new opportunities for legal trading on regular brokerage accounts and helps increase capital in the market.
An equally significant factor influencing the price of Bitcoin is political events in the United States. Positive statements from candidates such as Donald Trump and Kamala Harris about their support for the cryptocurrency industry create a favorable climate for investment. Both candidates have essentially declared their intention to develop the digital asset market, which, according to economist Noel Acheson, strengthens market expectations for friendly regulation.
However, BlackRock CEO Larry Fink argues that Bitcoin's growth may be driven by deeper economic factors that are independent of political decisions. He believes that the future of the crypto market is determined not so much by regulation as by the use and distribution of crypto assets. In his opinion, the current situation in the crypto market is reminiscent of the emergence of the mortgage market, which also developed gradually, but over time acquired significant scale.
In addition, positive trends in the crypto market correlate with favorable economic data from China and the United States. Financial analyst Vladislav Antonov from BitRiver notes that the recovery of investment demand and expectations of a cut in the Federal Reserve interest rate also support the markets. He emphasizes that this week the markets are expecting quarterly reports from 43 companies included in the S&P 500 index, which may also affect price dynamics.
Although the price of Bitcoin has slightly corrected after the recent growth, analysts believe that the asset has the potential for further growth to $68.8 thousand. If this level is broken, massive purchases of Bitcoin may follow, with a target mark of around $90 thousand.
Against the backdrop of these events, the Uniswap crypto exchange announced the launch of its own network called Unichain, which adds interest to the further development of the crypto market.
