What’s driving Bitcoin’s latest surge beyond $71,000? The world’s largest cryptocurrency is pushing toward a new all-time high, reaching heights not seen since June. The excitement around the upcoming U.S. election is one of the main drivers of the rally, alongside significant inflows into Bitcoin ETFs. Here’s a closer look at how this price surge is unfolding and whether it’s sustainable.
October has seen a remarkable $3.5 billion flow into the Bitcoin ETF market. Investors, seeking exposure to Bitcoin without holding it directly, are fueling demand for these funds. According to SoSoValue data, October 28 recorded the largest daily inflow, totalling $479.35 million. BlackRock’s IBIT ETF captured significant attention, pulling in $315.19 million in a single day, signalling increased institutional interest.
This influx has pushed Bitcoin’s trading volume up by 150% over the past 24 hours. Bitcoin’s recent losses have now been fully recovered, with the digital asset up by 21% over the past 60 days, currently trading around $71,200.
The recent rally has also triggered a wave of liquidations, particularly among traders with short positions. Data from Coinglass shows that over 68,000 traders were liquidated in the past 24 hours, totalling $239 million in liquidations. Notably, 74% of these were short positions valued at $178.39 million. After Bitcoin broke above $70,000, bullish momentum overwhelmed the traders who had bet on a price drop.
Binance topped the list of liquidations, with a single $18 million liquidation leading the pack. These liquidations add upward pressure on Bitcoin’s price, as traders closing short positions must buy Bitcoin, further supporting demand in the market.
Investors are also closely watching the U.S. election scheduled for next week. Many view Bitcoin as a “Trump trade,” believing that his pro-crypto stance will benefit the cryptocurrency. Trump has promised to make the U.S. the “crypto capital of the planet” if elected, a position that appeals to the cryptocurrency community. By contrast, Vice President Kamala Harris, who currently leads in prediction markets, adopts a more regulatory-friendly stance, more in line with the current administration’s cautious attitude toward digital assets.
Polymarket data shows that Trump has a 66% chance of winning against Harris, a factor that some investors believe could favour Bitcoin. This political backdrop adds an extra layer of volatility to Bitcoin’s trajectory.
Bitcoin’s rally has also lifted the broader crypto market, especially meme coins. Dogecoin (DOGE) jumped nearly 14%, reaching close to $0.16, its highest in five months. This rise came after Elon Musk endorsed Trump, speculating that Musk could potentially lead a new “Department of Governmental Efficiency (D.O.G.E.)” if Trump were elected. Meme coins like Dogecoin and Popcat (SOL) also saw gains, with Popcat surging by 14%.
The wider crypto market mirrored these gains, with the total market cap rising by 5% over the last 24 hours to reach $2.4 trillion. Trading volumes across major assets doubled, surpassing the $100 billion mark.
Analysts highlight $71,000 as a critical level for Bitcoin. If Bitcoin can break and sustain levels above this threshold, it may pave the way to March’s high of $73,700. Bullish momentum suggests options traders are eyeing an even higher peak, with some positioning for an $80,000 target by the end of the month.
Although Bitcoin remains susceptible to external factors, such as changes in market sentiment and regulatory announcements, technical indicators remain optimistic. A solid break beyond $73,700 would confirm the bullish trend, potentially opening doors to new highs as investor confidence grows.
The recent Bitcoin price rally reflects a mix of factors: ETF inflows, liquidation events favouring bullish sentiment, and speculations surrounding the U.S. election. The convergence of financial and political narratives is creating increased volatility for Bitcoin. Should Bitcoin maintain its upward momentum, it may soon target even higher levels, attracting both institutional investors and retail traders alike.
In this environment, Bitcoin’s upward trajectory is largely influenced by financial and political factors, with each providing a unique boost to its rise.