Bitcoin is heading towards its all-time high as of October 30, 2024. Bitcoin’s November Rally, A few days ago, it surged by more than 2% daily in the range of $66,000 to $68,000, reaching $70,000 in just three days, and then hitting $72,000 without any significant correction period. From experts’ perspective, they anticipate that after breaking through the resistance line at the $65,000 level and settling at the support line, another bull market will begin. Let’s examine some reasons for the current upward rally.
1. Expectations for the U.S. Presidential Election
Trump’s Pro-Cryptocurrency Policy Pledge
Former President Donald Trump has expressed strong support for cryptocurrencies, declaring his intention to “make America the world’s cryptocurrency capital.” He holds a positive stance on cryptocurrencies and Bitcoin. There are plans to further popularize Bitcoin, which has just begun to enter the mainstream, and to create a crypto-friendly regulatory environment by expanding its recognition as a U.S. financial asset.
Harris’s Changing Attitude Towards Cryptocurrencies
Initially, presidential candidate Harris seemed to follow the Biden administration’s regulation-focused policy without making specific mentions about cryptocurrencies. However, at a recent fundraising event in New York City, Harris expressed support for “encouraging innovative technologies like AI and cryptocurrencies,” mentioning the future of digital assets.This shift towards a more favorable view of cryptocurrencies by both candidates appears to be driving the upward rally with expectations of regulatory easing or abolition.
2. Bitcoin Halving
Since its inception, Bitcoin has undergone several halvings, each time followed by a surge after a certain period. The most recent Bitcoin halving occurred in April 2024, and now, about six months later, cryptocurrency investors’ expectations for an increase seem to be reflected, with buying sentiment stronger than selling sentiment.During a Bitcoin halving, the mining reward is cut in half, increasing its scarcity, which can cause structural changes in the Bitcoin mining industry and among miners. As significant liquidity changes are expected during the halving, caution is advised when investing.
Many investment experts predict a significant rise in late 2024 and 2025, as the U.S. presidential election coincides with the Bitcoin halving. However, U.S. inflation and interest rates have not yet stabilized, and while a clear direction hasn’t emerged, we’ve entered a highly volatile period, necessitating careful consideration in investments.
