Analyst Miles Deutscher shared his latest analysis, revealing that Bitcoin is on the verge of reaching all-time highs at around $71,000. As we enter this week, it’s essential to assess whether Bitcoin will surpass these highs and what to anticipate in the upcoming weeks, especially amidst the current market volatility surrounding the upcoming elections.
The analyst highlighted a significant trend where the issuance of new Bitcoins is being overshadowed by ETF purchases. For example, only 490 new Bitcoins were mined yesterday, while ETFs acquired a staggering 11,820. This disparity of 24x suggests a potential supply shortage, where demand surpasses supply, typically resulting in price surges.
The primary factors influencing Bitcoin’s price movement:
Bitcoin ETF Inflows
There has been a notable influx of capital into Bitcoin ETFs, with a whopping $900 million pouring in just yesterday and a total of $4 billion over the last few weeks. This surge signifies a strong interest from both retail investors and institutional funds.
Macro-Economic Factors
Given the record highs of stocks, housing prices, and gold, many investors are turning to Bitcoin as an investment option. The current low inflation rates and the possibility of Federal Reserve rate cuts are creating a favorable environment for Bitcoin investments.
Speculative Betting on Election Outcomes
Investors are engaging in speculation about how the upcoming elections might impact Bitcoin prices. There’s a prevalent sense of FOMO (fear of missing out) as traders brace themselves for potential price fluctuations post-election.
Key Price Levels
Bitcoin has recently broken through crucial resistance levels, including the $70,000 threshold. A successful weekly closure above this level would be bullish, but traders should remain vigilant for any potential reversals.
Bitcoin vs. Gold
The Bitcoin-gold chart suggests a potential cup and handle pattern, indicating that Bitcoin could soon catch up with gold prices as a safe haven asset.
