Bitcoin trades above 72k dollars for the first time in over 6 months

According to data from CoinMarketCap, Bitcoin reached $73,190.85 at 06:55 GMT, marking the first time in over six months that it has surpassed the $72,000 mark. 

The price of Bitcoin has risen by almost 5.94% in the past day to $73,190.85, the highest since the beginning of the summer and close to its all-time high of just under $74,000. The price of Bitcoin has mostly been between $50,000 and $70,000, except during a long, week-long period at the start of the year when it traded below $40,000. 

With a market valuation of more than $1.1 trillion, Bitcoin is the original cryptocurrency and is still the most widely used one. Bitcoin is vulnerable to sharp price swings and excessive volatility, just like other cryptocurrencies. 

Factors influencing Bitcoin's potential rise 

Bitcoin's potential increase is supported by a number of factors, most notably the expected interest rate cut by the US Federal Reserve. The market as a whole anticipates a 25 basis point rate cut on November 7, bringing rates down to the 4.5% to 4.75% range and indicating the need for changes to stabilize economic growth, according to Ryan Lee, chief analyst at Bitget Research. 

Additionally, according to CoinShares, October's cryptocurrency investment inflows increased to $3.4 billion, bringing the year-to-date total to $27 billion, nearly tripling the 2021 record of $10.5 billion. Only spot bitcoin ETFs saw net weekly inflows of $997.6 million, while short-bitcoin positions experienced $1.3 million in small net outflows. 

Upcoming U.S. presidential election 

In addition to the third-quarter financial results of major cryptocurrency companies like MicroStrategy (MSTR), the price increase coincides with the U.S. presidential election on November 5. The Republican nominee and former president Donald Trump has made a point of promoting cryptocurrency this year. 

The industry is divided on how Democratic nominee and vice president Kamala Harris's possible presidency might impact cryptocurrency companies, as she has been more subdued on the subject. As the election draws near, investors are keeping a close eye on the outcome, which is generally considered to be a major catalyst for the price of Bitcoin. 

October becomes Bitcoin’s most bullish month this year

October is known as "Uptober" by cryptocurrency enthusiasts because it has historically been the best month of the year for Bitcoin. The price of BTC has surged in October in seven out of the past eleven years. In March, Bitcoin hit a record high of $73,797.68 USD. Since then, it has primarily moved sideways or downward.

Disclaimer

This information should not be considered financial advice by any means. Please do your own research before making any investment decisions. The views in the articles are personal opinions only. Whale Insider is not responsible for any financial losses incurred.