Bitcoin surged to a high of $66,000 in the past 24 hours, breaking out of weeks of stagnation as the broader crypto market showed signs of recovery.
October has historically been a strong month for investors, with gains as high as 60% and an average return of 22%. Despite this, the market has remained stable over the past weeks, leading to a more cautious outlook among investors.
Yesterday’s upward movement, however, has rekindled optimism around the “Uptober” narrative as market analysts highlight why the top asset’s run could continue.
According to CryptoSlate’s data, Bitcoin’s price has slightly retracted to $65,632 as of this writing.
US elections
A major factor driving this renewed momentum is the growing perception that both leading US presidential candidates—Vice President Kamala Harris and former President Donald Trump—are pro-crypto. This belief suggests that the crypto market could benefit regardless of the election outcome.
Vice President Harris recently announced plans to establish a regulatory framework for digital assets, aiming to protect retail investors while promoting economic inclusion, particularly in minority communities.
On the other hand, Trump has positioned himself as a strong advocate for Bitcoin and cryptocurrencies, making pro-crypto statements during his campaign.
Blockchain-based prediction platform Polymarket shows Trump with a 56.2% chance of winning the impending election, while Harris stands at 43.4%.
Despite the election uncertainty, leading institutions like Galaxy Digital believe Bitcoin will remain unaffected regardless of who wins.
BlackRock CEO Larry Fink echoed this sentiment, stating that Bitcoin is poised to soar regardless of the election result. He emphasized that Bitcoin’s growth is driven more by liquidity and transparency than by regulation or political leadership.
Other key drivers
Other potential drivers behind Bitcoin’s recent performance include shifting market sentiment and global economic factors.
In an Oct. 15 note, trading firm QCP Capital noted that disappointment with China’s latest economic stimulus may have prompted some investors to redirect funds from Chinese equities into Bitcoin.
China’s attempts to revive its economy have been underwhelming, leaving many to question the effectiveness of its policies to combat deflation. This uncertainty has drawn further attention to Bitcoin as an alternative.
Additionally, the delay in repayments to creditors of the Mt. Gox exchange by another year has eased concerns about a sudden influx of Bitcoin supply flooding the market.
Geopolitical risks also appear to be diminishing, with reports suggesting that Israel may hold off on targeting Iran’s crude oil and nuclear infrastructure. This reduction in tensions could provide further stability to global markets.
QCP Capital also noted that the current lack of major inflation or labor data would allow the crypto market to rise with lower risk premiums.
