Analysts Bullish for Bitcoin: Will the Momentum Provide Tailwind for Market? 

Analysts are optimistic that Bitcoin will overcome the sideways movement to regain the mid-October rally and fuel the marketwide tailwind. 

Analysts consider that Bitcoin staged a solid run-up to shake off the shaky start of October. The BTC leaped from $59.4K to set a month’s high on Oct. 21 at $69.2K.  While the ten-day run lifted Bitcoin from the months-long sideways movement, the past few days show a retreat to trade at $67,555.87 per CoinGecko data.

While Bitcoin has slid back to the up-and-down movements, the 24-hour range emerges at $66,850.98 – $67,887.09. Comparatively, the present price is 8.30% away from matching BTC’s all-time high (ATH) price of $73,737.94. 

Implications of Trump’s Return to the White House

Many traders view Bitcoin as a Trump Trade and likely encountering market jitters owing to the potential of Donald Trump’s victory against Kamala Harris. Such is perceived to impact the broader financial trends. 

The bond yields rally as online prediction markets call for Trump’s victory. The advocacy for a pro-growth agenda by the Grand Old Party (GOP) nominee could usher in monetary policy tightening. Such awareness is behind the fluctuation witnessed in Bitcoin, now 1.6% down in its weekly run to change hands at $67,555.87.

Tony Sycamore from the IG trading platform considers that while the pro-crypto stance boosted the digital assets industry, the broader economic policies could moderate the optimism. The market analyst points out that the selloff in stocks, appreciating the US dollar, and yields constitute tightening financial conditions. 

Sycamore considers the situation not good for crypto in the long run. While some analysts may indicate the financial conditions were loose at the onset, the tightening exhibits more speed.

While the concerns for who wins the White House race are at their peak, Glassnode analysts reveal crypto assets are subject to multiple influences. In particular, the on-chain data portrays the short-term holders primarily in profit, potentially boosting the market sentiment.

In this context, Glassnode considers the on-chain perspective that all sub-age groups classified under short-term holders have unrealized profit. Such likely becomes the tailwind to fuel market sentiment. 

The positive sentiment could trigger buying activity as gains become noticeable to other investors. Investment flows from other investors could create and sustain demand cycles, scaling the market momentum. 

The Glassnode analysts consider the price to have shifted from the enthusiastic bull cycle to the euphoric run above $69,000 – the 2021 peak.

Bitcoin ETFs Attract Billion-Dollar Flow Amid Trump Optimism

The European asset manager CoinShares reflects on recent data that investors are bullish on Bitcoin run-up. The data by Farside Investors shows over $990 million flowing into the exchange-traded funds (ETFs) in the Oct. 21-25 week. Despite the tumble from $2 billion disclosed by CoinShares on Oct. 14-18 week, the $70K price tag remains in sight of the underlying asset.

The sustained net inflow coincides with the Bitcoin surge as investors went hard into the crypto assets funds, per the whole week’s data by CoinShares. 

Data from the UK-based Farside Investors shows that BlackRock’s iShares Bitcoin Trust (IBIT) accounts for the largest net inflow into the Bitcoin ETFs.   IBIT accounted for $1141.1 million of full-week net inflow, nearly matching the $1147 million in Oct. 14-18 flows. 

CoinShares indicates that American investors who desire exposure to Bitcoin are behind the monster $2.13 billion inflows reported on Monday, Oct. 21. 

The Monday report showed that increasing investor bullishness emerges from the prediction that former president Donald Trump will secure victory in the next month’s election. The Republican candidate has emerged as more pro-crypto in messaging, unlike Kamala Harris. The renewed optimism stems from the expectation of a Republican victory, as investors view it as more supportive of digital assets.