Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Crypto-related equities rose in Tuesday’s pre-market trading as Bitcoin surpassed $70,000 — a threshold the asset had not achieved since June.
The cryptocurrency was last seen trading at approximately $71,073, reflecting a 4% increase for the day. Despite this rise, it has not yet reached its all-time high of $73,737.
As Bitcoin’s value increased, it had a corresponding impact on the market. As a result, shares of crypto exchange Coinbase experienced a 4% uptick. MicroStrategy saw a 5% increase. Bitcoin mining firms also gained from the favorable sentiment; US-listed shares of Bitfarms rose by 3.7%, while both Riot Platforms and Hut 8 experienced gains of over 3%.
Moreover, investment products directly linked to Bitcoin’s performance, such as the ProShares Bitcoin Strategy ETF and the iShares Bitcoin Trust, also increased, adding 2.5% and 2.2% respectively. This trend indicates investor confidence in Bitcoin’s sustained value, particularly as it nears its prior peak.
Current Rally Surpasses Summer High
Alex Kuptsikevich, the chief market analyst at FxPro, noted that the current market prices are the highest observed since late July. Previously, when the market reached these levels, it paused and subsequently fell.
Related Posts
“This time, the trend appears more bullish, as the market has been on an upward trajectory since early September,” he stated.
Bitcoin Rallies on Strong ETF Demand and Pro-Crypto Election Promises
Ryan Lee, the chief analyst at Bitget Research, indicated that the recent surge in Bitcoin’s price can be primarily linked to heightened demand for spot Bitcoin ETFs. In the past six days, these ETFs have recorded a historic $2.4 billion inflow since their launch in January 2024, indicating robust market backing.
Additionally, the forthcoming US presidential election has introduced another layer of impact. With both leading candidates suggesting more favorable regulations for cryptocurrencies, the market is optimistic about a clearer legal framework, which could further legitimize and stabilize digital assets.
“Both candidates have shown a commitment to establishing clearer regulatory frameworks for digital assets, and Trump, in particular, has actively sought backing from the crypto community,” Lee remarked.
Technical indicators have also turned positive, with Bitcoin’s 50-day moving average exceeding its 200-day moving average, a signal often linked to the onset of a bullish trend. Along with a favorable Relative Strength Index, these indicators imply that Bitcoin may soon test its yearly high of $73,000.
In conclusion, the combination of ETF capital inflows, optimistic political signals, and bullish market indicators has fostered a conducive environment for Bitcoin’s price to rise, although investors should remain vigilant regarding the market’s inherent volatility.
The post Bitcoin Surge to Near Five-Month High Sparks Pre-Market Crypto Stock Rally appeared first on Cryptonews.
