Bitcoin’s price surged to close to $68,000 on October 15th, reaching its highest point in two months. The cryptocurrency reached $67,800 before dropping back down to just below $66,000. This sudden increase led to over $300 million in liquidations in the last 24 hours, with most of the positions being short-BTC or from traders expecting lower prices. Earlier, over $145 million in short liquidations hinted at an incoming market spike.
The surge in Bitcoin’s price could be attributed to a recent uptick in the U.S. stock market, which may have increased investor interest in BTC as a risk asset. When share prices rise and Federal Reserve funding rates drop, it usually leads to more liquidity in the market. This bullish momentum also resulted in a higher demand for spot Bitcoin ETFs in the United States, with a capital inflow of $555.8 million – the highest in four months.
Despite a rough start to October, Bitcoin historically performs well in the final quarter of the year. Over the past eight years, the cryptocurrency has returned an average of over 22% in the last three months. Additionally, Bitcoin has seen price increases in the two previous pre-election cycles, doubling in 2016 and tripling in 2020. These increases usually start weeks before the U.S. presidential election and set a new all-time high in the following year.
Experts from QCP Capital believe that a similar pattern could emerge this time around, especially with a candidate who is vocal about supporting Bitcoin leading the race. Former President Donald Trump has gained a substantial lead over Kamala Harris on prediction platforms like Polymarket and Kalshi, hinting at a potential positive outcome for Bitcoin.
Overall, the recent surge in Bitcoin’s price to $67,000 signals a renewed interest in the cryptocurrency, driven by various factors such as market liquidity, investor sentiment, and the upcoming U.S. presidential election. As Bitcoin continues to break new highs, it remains a focal point for investors looking to capitalize on its potential for growth and profitability in the digital asset space.