Bitcoin has once again captured the attention of the cryptocurrency world, as it nears the $70,000 mark, just shy of its all-time high of $74,000 set in March 2024. This recent rally has been fueled by increased global liquidity, optimism surrounding riskier assets, and upcoming US presidential elections.
As of October 17, 2024, Bitcoin had increased 2.9%, bringing its price to $68,376. Market analysts predict a continued upward trajectory.
What’s Driving Bitcoin’s Rally?
- Global Liquidity Surge: Central banks around the world, particularly in China, have injected massive amounts of cheap capital into their economies to stimulate growth. This influx of liquidity has boosted demand for riskier assets, including Bitcoin.
- US Presidential Elections: The upcoming elections have created uncertainty in traditional markets, leading investors to seek alternative investments like Bitcoin, often viewed as a hedge against inflation and market volatility.
- Regulatory Support: Vice President Kamala Harris has recently pledged support for a clear regulatory framework for cryptocurrencies, signaling a potential shift away from regulation by enforcement and toward a more structured approach. This has buoyed investor sentiment in the US.
Blockforce Capital highlighted that the rise in global liquidity is a significant driver behind Bitcoin’s rally, stating:
“When global liquidity exceeds its moving average, it often coincides with significant upward movements in the price of Bitcoin.”
Bitcoin Price Movement
- Last Traded Price: $68,376 (October 17, 2024)
- Previous All-Time High: $74,000 (March 2024)
- Gains in October: +2.9% in one day
Bitcoin Price Movements 2024
| Date | Price (USD) | Monthly Gain (%) |
|---|---|---|
| March 2024 | $74,000 | +10.5% |
| July 2024 | $70,000 | +8.2% |
| October 2024 | $68,376 | +2.9% (so far) |
Is Bitcoin’s Rally Sustainable?
While Bitcoin has been riding a wave of optimism, experts caution that market volatility remains high. The crypto market is notoriously unpredictable, and external factors such as global economic policies, regulation changes, and investor sentiment shifts could impact the rally.
However, the combination of favourable liquidity conditions and strong institutional interest suggests that Bitcoin could continue to approach and possibly exceed its $70,000 target in the near future.
Disclaimer
Cryptocurrency markets are highly volatile, and prices may fluctuate rapidly. The analysis is based on current market trends and should not be construed as financial advice.