Why Crypto Market Is Up Today? Will US Elections 2024 Drive More Gains?
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The total crypto market cap surged by 2 percent in the past 24 hours to hover about $2.28 trillion on Saturday, October 12, during the early European session. The altcoin industry experienced a knee-jerk reaction after Bitcoin’s (BTC) price surged to a range high of about $63,361 on Friday during the mid-New York session.
The notable crypto rebound in the past 24 hours did not result in heavy liquidations. Furthermore, more crypto traders were expecting higher volatility over the weekend after Bitcoin price traded below $59k for the first time in three weeks.
Major Forces Behind Today’s Crypto Pump
Re-emergence of Whale Demand
Spot ETF:
$348.7M to $BTC and
Week: 7 to 11 October 2024
#BlackRock (IBIT) saw the largest inflow of the week with $140.7M, adding a net 2,229 $BTC to its holdings.
Follow @spotonchain and check out the latest updates about #Bitcoin and #Ethereum… pic.twitter.com/yvn06VHMX5
— Spot On Chain (@spotonchain) October 12, 2024
After bleeding for the past few days, the US spot Bitcoin ETFs registered a net cash inflow of more than $348 million on Friday. BlackRock’s IBIT registered the highest cash inflow on Friday of about $140.7 million, followed by Fidelity’s FBTC with around $117 million.
Meanwhile, the spot Ether ETF issuers register a net cash inflow of about $2 million on Friday. As a result, the net supply of Bitcoins on crypto exchanges declined by around 10k in the past week, while Ether’s supply declined by around 24.6k in the past 24 hours.
Favoring Technical Aspects
According to a popular crypto analyst Benjamin Cowen, Bitcoin price has reclaimed crucial support levels following the recent bounce. From a technical standpoint, Bitcoin price has been forming a similar fractal pattern to last year’s second-half bullish breakout.
A consistent pump above $66k will trigger the return of FOMO traders, thus helping push Bitcoin price towards its all-time high.
Such a scenario would impact the entire altcoin industry, thus resulting in a major crypto rally in the coming months.
Fourth Quarter Bulls
After the Bitcoin price rebounded from below $59k to a high of over $63k, the fear of further crypto capitulation significantly declined. Bitcoin’s fear and greed index surged from 32 percent, denoting market fear, to 49 percent today, representing the crowd’s neutrality in the past 24 hours.
The October bullish narrative is gradually creeping back, with Bitcoin price expected to continue in a rising trend in the near future.
Moreover, the US 2024 general elections are in about three weeks, and historical data shows they have triggered bullish sentiment.
Additionally, Gold and major stock indexes have been leading in bullish breakouts in the recent past.