ETF Surge Drives BTC Higher
The rally in Bitcoin this week has seen the market breaking out to new, all-time highs last night. Bullish sentiment, linked to increased expectations of a Trump win next week, saw BTC futures briefly piercing above the 74,355 level to trade new record highs, before reversing back below the level. The market remains bid through early European trading on Wednesday with bulls hoping for a renewed push higher. A resurgence in institutional demand has been a key driver of this current move higher with Wall Street names piling back into BTC ETFs this week ahead of the US election next week, hoping to capitalise on an expected price surge if Trump wins.
Trump & Bitcoin
Given Trump’s pro-crypto stance, traders are expecting a crypto boom if he’s re-elected next week. Promises of an easier regulatory environment are expected to drive a fresh wave of demand for crypto businesses and products. This outlook has seen almost $4 billion worth of ETF inflows this month as investors look to position ahead of the election.
Volatility Risks
Given the high level of bullish expectation, however, there is huge risk into the elections with BT likely to be quickly dumped if Trump loses. While broadly speaking the BTC bullish view looks solid into next year, near-term, BTC could see sharp unwinding and speculative dumping if Trump is unsuccessful next week given the rally we’ve seen ahead of the elections.
Technical Views
BTC
The rally in BTC has seen the market breaking out above the 72,550 level and the bull channel highs with price briefly testing above the 74,355 highs. With momentum studies bullish, focus is on a further push higher here while price holds above the 69,355. Only below there does the near-term bull view lose steam.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.