On October 28, Bitcoin prices rallied, reaching a high of $71,500, the digital asset’s most significant value in over four months, Forbes reports.
The rise in Bitcoin value comes as part of a broader cryptocurrency market rally, with multiple digital assets showing impressive gains. Trading data from Coinbase shows Bitcoin trading at levels not seen since early June, bringing it within striking distance of potentially setting a new all-time high.
Tim Enneking, managing partner of Psalion, attributes Bitcoin’s recent gains to several converging factors. He highlighted the October price trend, often termed “Uptober,” as a predictable market behavior, particularly in the months following Bitcoin’s quadrennial “halving,” which typically results in delayed but substantial price gains.
“The upward price trend after a halving is always delayed by about half a year,” Enneking pointed out.
Despite Bitcoin’s recent momentum, Enneking cautioned that external factors, such as a US Department of Justice investigation into Tether, briefly slowed Bitcoin’s climb. While Tether denied the allegations reported in The Wall Street Journal, the news added temporary headwinds to the market, Enneking noted.
The upcoming US election is another potential influence. Enneking suggested that Bitcoin prices could see volatility linked to anticipated changes in regulatory leadership, especially if the SEC’s current chair, Gary Gensler, is replaced. Speculation surrounds how different election outcomes could impact the crypto market, with some analysts predicting that a Trump victory could boost Bitcoin.
“A Harris victory… could easily see a significant BTC throwback to the mid- or low-60s,” Enneking noted.
Wendy O, a well-known figure in the crypto space, sees parallels between Bitcoin’s performance in 2020 and today’s trajectory, although she noted key differences in market fundamentals. Comparing the election cycles, she observed that Bitcoin’s 2020 rally aligned with the economic uncertainties of the COVID-19 pandemic, whereas 2024 brings different factors, such as recent approval of a Bitcoin spot ETF.
Analyzing Bitcoin’s historical performance, Wendy O remarked on its four-year cycle, heavily influenced by Bitcoin’s halving events.
“We can still notice 2020 resistance at ~$12,000 and 2024 resistance at ~$70,000,” she said.
For Bitcoin to enter uncharted price discovery territory, Wendy O believes breaking the $74,000 resistance level will be key.
While recent price movement signals a potential bull market, experts are advising caution. Enneking views the current market as promising but cautioned that unpredictable events, such as the upcoming election, could introduce volatility.
“I wouldn’t pop the cork on the Champagne bottle quite yet,” he concluded.
Enneking emphasized that while the recent uptick is encouraging, it’s essential to remain vigilant about potential market shifts.
