Why Is Bitcoin Price Up Today?

The Bitcoin price once again traded in the green, after falling below the $69,000 mark today. The current rebound in the flagship crypto’s price has sparked speculations over the potential reason behind it. Besides, it also fueled discussions if how BTC could maintain the upward momentum in the coming days.

Why Is Bitcoin Price Rising?

There could be a flurry of factors that are supporting the surge in Bitcoin price today. However, here we explore some of the top reasons that may have contributed to the crypto’s run towards the north.

Bitcoin Price Soars After US Job Data

The latest US Job data appears to have boosted the crypto market sentiment, which in turn aided the Bitcoin price to move higher. The latest data by the Labor Department showed that non-farm payrolls rose by only 12,000 in October, the slowest since late 2020. It marked a sharp decline from September, and the market expected 110,000.

Notably, the figure has cemented bets towards a 25 bps Fed rate cut at their upcoming meeting next week. Previously, the market was anticipating robust job data like September which could have resulted in a pause in the Fed’s policy rate trimming in November.

However, the latest data appears to have bolstered the market sentiment, as evidenced by the weakening dollar and rising stocks and crypto prices. Now, the market is anticipating two more rate cuts this year, one being in next week’s FOMC and another in December.

Usually, the lower interest rates tend to boost the market sentiment, while raising the risk-bet appetite of the traders. Considering that many in the market are anticipating the US Fed rate cuts to boost BTC and other top altcoins’ value.

Regaining Investors’ Confidence Ahead US Election

The US Election is likely to play an important role in the broader financial markets, let alone the crypto space. According to Polymarkets data, there is a 57.7% probability of Donald Trump winning the upcoming US Presidential Election.

However, recent Bitcoin price analysis hints that the crypto is poised to witness a steady momentum, even if Kamala Harris wins the upcoming election. However, some have argued BTC to have some more advantage if Donald Trump secures victory in the upcoming election, given his recent and active support for Bitcoin.

Having said that, the upcoming US Election, scheduled for November 5, is likely to boost the market sentiment, while providing further support to BTC price.

Bitcoin ETF Inflow

The recent robust influx into the US Spot Bitcoin ETF has sparked optimism among the market participants. It reflects the growing institutional focus towards the crypto, which could aid in continuing the momentum of Bitcoin going forward.

This week, the overall inflow into the US Spot Bitcoin ETF totaled $2.22 billion. The investment instruments recorded strong inflow for the first four days of the week, with only an outflow of $54.9 million noted on Friday, Farside Investors data showed. BlackRock Bitcoin ETF contributed the most to this robust figure.

However, despite the outflux, the recent inflow into the Bitcoin ETFs indicates that the Wall Street players are shifting focus toward the digital assets space. This also appears to have boosted the market sentiment, while aiding the rally in Bitcoin price.

Bitcoin Price Rally In October Boosts Sentiment

Bitcoin price has continued its “Uptober” rally this year, once again mirroring the historical trends witnessed in October. This appears to have boosted the market sentiment. Besides, over the past few weeks, the crypto market tends to rally over the weekend.

Considering that, the investors might be regaining confidence towards the crypto given the upcoming macroeconomic events and other related factors. Besides, the historical data also showed that the crypto tends to showcase positive performance through the final quarter of the year. So many in the digital assets space anticipate a similar picture this year, with anticipating soaring towards BTC reaching a new high soon.

Bottom Line

BTC price today was slightly up and exchanged hands at $69,638 while touching a 24-hour high of $71,559.02. Derivatives data from CoinGlass showed that Bitcoin Futures Open Interest also stayed near the flatline, suggesting that the investors are still looking for more clarity before putting further bets into the market.

Meanwhile, a recent Bitcoin price prediction showed that the crypto could hit a high of $86,764 this month, sparking market optimism. With the upcoming US election, next week’s FOMC, and other major market events, many analysts are bullish on the crypto’s potential to continue its rally in the coming days.

Besides, a recent Forbes report also caught the eyes of investors. The report showed that BTC showed lesser volatility than the Wall Street behemoth stocks like Tesla, AMD, and NVIDIA in October. This also refutes earlier claims that Bitcoin is a more volatile asset than traditional assets like stocks and others.

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