Analyst Miles Deutscher said in a recent analysis that Bitcoin is currently approaching an all-time high of around $71,000. This week, it will be important to consider whether Bitcoin can break through these highs and what we can expect in the coming weeks. The markets are particularly volatile due to the upcoming election.
The analyst explained how quickly new Bitcoin issuance is compared to ETF purchases. For example, yesterday only 490 new Bitcoins were mined, while 11,820 ETFs were purchased. This 24x discrepancy shows potential supply pressure where demand exceeds supply, often leading to higher prices.
The main factors driving Bitcoin price movements are:
Bitcoin ETF Flow
There have been recent capital inflows into Bitcoin ETFs, with $900 million just yesterday and $4 billion over the past few weeks. This surge indicates strong interest from both individual investors and institutional funds.
macroeconomic factors
With stocks, home prices, and gold all reaching record highs, many people are investing in Bitcoin. The current low inflation rate and potential Federal Reserve (Fed) interest rate cuts are creating a favorable environment for Bitcoin investment.
Speculative betting on election results
Many investors are speculating how the upcoming election will affect the price of Bitcoin. Fear of missing out (FOMO) is rampant as traders brace for potential price moves following the election.
key price levels
Bitcoin recently broke above major resistance levels, including $70,000. A successful weekly close above this level is bullish, but traders should monitor for a potential reversal.
Bitcoin vs Gold
The Bitcoin-Gold chart shows a potential cup and handle shape, suggesting that Bitcoin could soon catch up with the price of gold as a safe haven asset.