The cryptocurrency market is seeing a rally, with Bitcoin leading the charge by surpassing the $69,000 mark. On Monday, October 21, Bitcoin touched $69,408.1 (roughly Rs 58,35,227) on international exchanges, according to CoinMarketCap. This marks a recovery after the cryptocurrency was in a price slump for the last three months.
The recent price surge is being attributed to several factors, with analysts highlighting the upcoming US presidential elections as one of the major reasons.
Investors seem to be reacting positively to the possibility of former President Donald Trump making a return to office, which is contributing to increased confidence in the crypto market. Trump, who has previously shown support for cryptocurrencies, is viewed by many as a potential ally for digital assets, adding fuel to the optimism.
Bitcoin (BTC), the largest cryptocurrency by market value, saw its price shoot up during early trading on Monday, reaching the three-month high of $69,000. By 6:50 PM, however, the price had settled slightly lower at $67,832.23, reflecting a minor dip of 0.62%. Meanwhile, Ethereum (ETH), the second-largest cryptocurrency, was up 1.55%, trading at $2,687.28.
“The U.S. election year is adding momentum to the bullish outlook for Bitcoin,” said the CoinSwitch Markets Desk.
“There is growing excitement among crypto investors as prediction markets indicate an increased chance of a Trump victory in the upcoming election. Trump has previously supported cryptocurrencies and has even suggested that the US national debt could be managed through crypto. This rhetoric is energising the market and contributing to the rally.”
Avinash Shekhar, Co-founder and CEO of Pi42, said that Bitcoin’s rally is also being driven by factors such as low interest rates and market support from U.S. Vice President Kamala Harris, alongside Trump’s 60% chance of winning the election.
He anticipates Bitcoin reaching a near-term price target of $72,000 while also keeping an eye on a potential drop below $66,500, which could indicate some market resistance. Shekhar further pointed out that Ethereum is also displaying strong momentum.
“Ethereum has broken out of a pattern and could rise to $2,850 before encountering selling pressure. If it retests this level successfully, investors might consider buying during dips. However, if Ethereum falls below its 20-day moving average, it could indicate bearish sentiment.” he said as quoted by The Economic Times.
Bitcoin’s market capitalisation has increased significantly in the last 24 hours, reaching $1.364 trillion. According to CoinMarketCap, Bitcoin now dominates 57.17% of the entire crypto market. Trading volume for Bitcoin also surged, with a 71.5% increase, totalling $23.56 billion in the past 24 hours.
Vikram Subburaj, CEO of Giottus Crypto Platform, said, “Bitcoin has broken the key resistance at $69,000 with strong momentum. If it crosses the $70,000 threshold, a clear path to $72,000 becomes visible. A strong end to October could reverse Bitcoin’s trend of seven months of lower highs and lead it into a bullish phase, possibly reaching new all-time highs.”
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
