Finally, the ‘uptober’ effect that investors had long waited for began to emerge.
Overall, there are optimistic expectations for cryptocurrencies between now and the end of the year.
Demand for bitcoin (BTC) exchange-traded funds (ETFs) in the United States has skyrocketed this week, putting upward pressure on the currency’s price.
In the first four days of this period, 1.86 billion dollars (USD) entered the instruments. It’s temporary the biggest weekly entry since Bitcoin’s price hit a new all-time high seven months ago in March.
This shows a growing interest in the bitcoin market investors traditional and institutional, these are the ones who usually have access to ETFs. However, it remains to be seen how the instruments will close this Friday, due to the global environment that is changing with the development of the war in the Middle East.
Israel reported Yesterday afternoon, Thursday, the death of Hamas leader Yahya Sinwar, indicating that this brings the war in the Middle East closer to the end. While this may shake the markets, bitcoin was quiet for the time being indicating that ETFs could continue their inflows.
Below is the flow of bitcoin ETFs in the United States per week since their launch early this year.
The increase in demand in ETF has pushed the price of bitcoin to $68,000 this week, the highest level since July. In this way, the coin maintains the uptrend of the past two months and breaks the corrective trend it showed in the previous five months. This can be seen in the following graph.
So far shown en route for bitcoin
This behavior raises expectations that the phenomenon of ‘uptober’ has begun, a concept that combines the English words upwards (go up) and October (October). This concept is used in the financial markets because of the upward trend they usually experience during this month.
As economic activities restart this month after the summer in the Northern Hemisphere, where the economic powers are located, markets tend to rise. Just in case bitcoin this month was the month that closed higher most often and greater profits it has produced, as the following graph shows.
Currently, the price of bitcoin is up 7% so far in October, something that has also been driven by the macroeconomic environment. The increased liquidity generated by the cuts interest rates in the United States, China, and Europe has motivated this scenario.
Increasing bets on a victory for Donald Trump in the US presidential elections on November 5 have contributed to the optimism. This candidate, leader of the Republican Party, plans to boost the ecosystem and hold reserves in bitcoin if he wins. That is why he is seen as a catalyst for the market.
With this panorama, as reported by CriptoNoticias, there are plenty of optimistic predictions for bitcoin in the coming days. According to the betting odds on the Polymarket platform, most predict that the coin exceed the price of USD 70,000 in October and reach a new all-time high before the end of 2024.
Meanwhile, Bitcoin is trading 10% below its all-time high of $73,700, which was recorded seven months ago.
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