Bitcoin’s rise in mid-October sparked discussions about how long the crypto market will be able to demonstrate positive dynamics. Each side has its own arguments.
We tell you why BTC is growing and what forecast investors give for the Bitcoin exchange rate against the backdrop of positive market dynamics.
Why is Bitcoin growing?
On October 16, 2024, Bitcoin immediately reached $68,400, the level at the end of July 2024, but after that the coin corrected. As of the time of writing, BTC is trading at $67,339, which is only 8% below the absolute maximum, which was recorded on March 14 this year at $73,750.
There are several reasons for Bitcoin’s growth. Among them are the following:
- expectations of a further reduction in the Fed’s key interest rate, which may increase the attractiveness of such high-risk assets as crypto;
- rescheduling payments to Mt. creditors. Gox, thanks to which the threat of a BTC sale in the near future was eliminated;
- expectations of an injection of liquidity into the banking sector from China, some of which may end up in crypto;
- the approaching US presidential election, which may be won by crypto-loyal Donald Trump;
- growing interest in Bitcoin ETFs from institutional investors, which forces issuers of instruments to buy free BTC;
- a decrease in the supply of bitcoins on exchanges against the backdrop of the April 2024 halving, which contributed to an increase in the shortage of BTC in the market.
The growth of Bitcoin was also supported by the expectations of market participants. The fact is that crypto often shows positive dynamics at the end of the year. Investors speculated that 2024 would be no exception.
Bitcoin rate forecast
Many members of the crypto community believe that Bitcoin will continue to grow. For example, a crypto investor @Eljaboom sure is that BTC is on the verge of updating its absolute maximum. He outlined the expected trajectory of Bitcoin on the chart.
With the prospect of further growth of BTC agree Trader Doctor Profit. According to his observations, the market began to factor into the price of Bitcoin the growing shortage of cryptocurrency in the market.
Analyst Gert van Laggen joined the optimists. He thinksthat BTC is on the verge of parabolic growth.
Proponents of positive forecasts draw attention to the similarity of cryptocurrency behavior patterns in similar circumstances. As an example, one of the network users compared BTC movements in the period before the US presidential elections in 2016. If history repeats itself, with the appointment of a new head of America, Bitcoin will be able to set off to conquer new heights.
Comparison of Bitcoin behavior before the 2016 and 2024 US presidential elections
Inmortal analyst gave a slightly less positive forecast for the Bitcoin price. He is waiting for the BTC all-time high to be updated in December. At the same time, in November, in his opinion, the cryptocurrency risks entering another correction.
Cautious optimism also demonstrated analyst Mark Cullen. He does not rule out another wave of Bitcoin correction if Kamala Harris wins the US elections. At the same time, Trump’s triumph, in his opinion, will launch a wave of growth in the crypto market.
Previously, VanEck analysts came to the conclusion that Trump and Harris would be equally useful for the crypto industry.
Some members of the crypto community pay attention to the fact that from a technical point of view, BTC has not yet managed to break through the resistance of the descending channel, which means it is too early to talk about “Bitcoin’s flight to the moon.”
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Source: Cryptocurrency
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