Bitcoin Soars Above $71K for the First Time Since Summer

Unique circumstances on the crypto market have driven Bitcoin's price above $71,000 for the first time since June 2024. Investors are optimistic about the near future of the leading cryptocurrency, anticipating both further growth and possible corrections.

Experts highlight several reasons behind this rally:

• Activity Among Major Holders. The significant activity of “whales” withdrawing large amounts of Bitcoin from exchanges shows growing investor confidence. One major holder recently withdrew 570 BTC (~$40,6M), increasing their holdings to nearly 6,000 BTC (~$427M).
• U.S. Presidential Election. With Donald Trump’s chances of winning the upcoming election increasing, optimism among crypto investors is also rising. While both candidates have shown some level of support for the crypto industry, Trump is generally perceived as the more favorable option.
• Anticipation of Financial Reports. This week, key IT companies like Meta and Alphabet are set to release financial reports, creating a positive outlook in the stock market, which often correlates with the crypto market.
• Expected Federal Reserve Interest Rate Cut. According to CME Group, there is a 96.4% probability of a 25-basis-point interest rate cut, which may have served as a growth driver for Bitcoin.

Impacts of the Rally

This recent price surge has led to:

• Liquidations of futures contracts amounting to nearly $237 million in just one day;
• A large inflow of funds into Bitcoin spot ETFs, totaling $479 million, with $315 million directed into BlackRock’s IBIT fund;
• Bitcoin mining stocks soaring by an average of 10–20% in a single day.

Correction or New High?

As of writing, BTC trades around $71.2K, raising questions about what’s next. Despite the current upward trend, some experts caution that a correction might follow the November 5 elections. Profit-taking could put pressure on the price, but buyer support around the $60,000 level may prove pivotal.

According to Bitget’s Chief Analyst Ryan Lee, Bitcoin is poised for substantial growth, with the Federal Reserve’s rate cut decision on November 7 likely to play a key role.

Furthermore, analysts predict that even if a short-term correction occurs due to the elections or other factors, there remains a strong chance that Bitcoin could surpass the $75,000 mark by the end of the year.