Bitcoin (BTC) Passes $67,000 For the First Time in 3 Months: Reasons Behind Today’s Surge

Key Takeaways:

• Bitcoin surged to $67,881.68 for the first time since July, pushing the crypto market cap to $2.3 trillion.
• QCP Capital outlined U.S. elections and regulatory announcements as key drivers of the price movement.
• On Monday, the Bitcoin spot ETF experienced a significant net inflow of $555 million.

Bitcoin (BTC) peaked at over $67,000 on Tuesday, rising from a low of 64,809.20 within 24 hours to its highest point of $67,881.68. This level has not been seen since late July 2024.

This increase is reflected in the overall performance of the cryptocurrency market capitalization, which is currently at $2.3 trillion, marking a 0.56% increase over the past 24 hours, according to CoinMarketCap.

Crypto Market Finally Witnesses “Uptober.”

Around 2:05 PM UTC on Tuesday, the BTC price hit this level and has since slightly decreased to $66,883.23. It has recorded a 1.31% increase in the past 24 hours, with a trading volume of $48.03 billion.

Meanwhile, other major alternative cryptocurrencies, generally thought to track Bitcoin's price movements, show losses at press time. Ethereum (ETH), Solana (SOL), Avalanche (AVAX), Toncoin (TON), and Sui (SUI) have dropped by 1.30%, 0.73%, 3.14%, 2.51%, and 7.30%, respectively, over the last day.

Nevertheless, while October has historically been positive for Bitcoin's performance, it has been subjected to a bearish period since the beginning of the month. This initially caused many cryptocurrency enthusiasts to lose hope in the well-known “Uptober” trend.

Related: Peter Brandt Warns Bitcoin’s ATH Lacks Conviction, Predicts Potential 75% Slump.

As a result, it is important to thoroughly investigate the reasons for Bitcoin's sudden shift to a positive direction in October despite a challenging beginning.

A recent report from QCP Capital, a crypto-asset trading firm specializing in managing proprietary investment and trading strategies, shed light on the likely causes of the optimism that resulted in Bitcoin surpassing $66.5k on October 15.

5 Key Reasons Why Bitcoin is Increasing.

In an October 5 “Asia Colour” report, QCP Capital outlines various factors contributing to the recent surge in Bitcoin. These include developments related to the U.S. elections, regulatory announcements, and global economic movements as significant drivers of the price movement.

One reason behind this surge is the expectations surrounding the U.S. elections. Donald Trump's rise in the polls has instilled a sense of market security.

Additionally, U.S. Vice President Kamala Harris‘s more positive stance on cryptocurrency regulations has further bolstered the market. This contrasts with the previous tough stance taken by the Biden administration.

Market reactions to China also played a role. Following China's recent underwhelming stimulus efforts, some investors may have shifted their capital from Chinese stocks to Bitcoin (BTC). This trend was anticipated in previous market analyses by QCP Capital.

Moreover, the delay in repayments related to the Mt. Gox case—a significant historical event for Bitcoin—has alleviated concerns of a potential supply glut, providing additional support for the price.

Related: Bitcoin Reigns Supreme Despite Q3 Market Dip: NYDIG Findings.

The report also suggests that geopolitical stability may have contributed to Bitcoin's price surge. Current reports indicate that Israel may refrain from targeting Iran's crucial oil and nuclear infrastructure, potentially reducing geopolitical tensions and fostering a more stable market environment.

Looking Ahead

The “Asia Colour” report concludes that with Kamala Harris and Donald Trump showing a more favorable stance toward cryptocurrencies, the overall sentiment heading into the elections could benefit the market, irrespective of the election outcome.

In addition, the absence of major inflation or labor data on the horizon creates a favorable environment for Bitcoin and other cryptocurrencies to thrive with lower risk premiums.

Related: Donald Trump Vows to “Fire Gary Gensler” and Appoint New SEC Chair

A recent notable development for the crypto market is the Bitcoin spot ETF, which experienced a significant net inflow of $555 million on Monday—the largest since early June. This indicates strong interest among investors.