Bitcoin Surges To $61,000 As Experts Eye Pre-Election Patterns And ETF Flows
By Benzinga
Bitcoin (CRYPTO: BTC), the world’s leading cryptocurrency, has surged back to $61,000, marking a 3.4% increase over the last 24 hours.
What Happened: This upward momentum comes as market analysts and experts closely watch historical patterns related to U.S. presidential elections and their potential impact on cryptocurrency prices, while also monitoring significant movements in cryptocurrency ETFs.
Ethereum (CRYPTO: ETH), the second-largest cryptocurrency by market capitalization, is also experiencing gains, up 3.9% at $2,580.
Notably, Ethereum spot ETFs saw a total net inflow of $5.8 million on Aug. 28, breaking a nine-day streak of net outflows, according to data.
BlackRock‘s (NASDAQ:ETHA) led the charge with an inflow of $8.3967 million, followed by Fidelity‘s (CBOE: FETH) with $1.2592 million, while Grayscale‘s (NYSE:ETHE) experienced an outflow of $3.8112 million.
In contrast, Bitcoin spot ETFs faced a total net outflow of $105 million on the same day.
Significant outflows were observed from Ark & 21Shares (CBOE: ARKB) ($59.27 million), Grayscale‘s (OTC:GBTC) ($7.9796 million), and Grayscale’s mini ETF (NYSE:BTC) ($8.7716 million), according to data from SoSo Value.
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Why It Matters: Analysts at Bitfinex have identified a recurring trend in Bitcoin’s price behavior leading up to U.S. presidential elections.
“Bitcoin’s price behavior leading up to U.S. presidential elections has exhibited a consistent pattern of significant dips approximately 2-3 months before the elections, followed by a recovery and often a rally afterward,” the Bitfinex team stated in a note to Benzinga.
They attribute this pattern to various factors, including market uncertainty, seasonality and correlation with traditional financial markets.
“While Bitcoin’s price movements align with the election cycle, there is no strong evidence to suggest that the election outcomes themselves directly cause these movements. Other factors, such as U.S. monetary policy, global economic conditions, and technological advancements within the cryptocurrency space, play more significant roles in shaping Bitcoin’s price behavior,” the analysts further explained.
As Bitcoin approaches its all-time high, experts are closely monitoring key resistance levels.
Speaking with Benzinga, Georgios Parfenidis, risk manager at YouHodler, outlined several critical price points to watch.
“If the price manages to break $65k, then $67k is the next target that must be monitored. It can act as resistance initially and support if the market continues upward,” Parfenidis noted.
He also highlighted the psychological importance of the $70-75k range, suggesting it could “create euphoria in the market and good hope for further upward movement.”
With Bitcoin’s price action and ETF flows generating significant interest, industry professionals and investors are eagerly anticipating Benzinga’s Future of Digital Assets event on Nov. 19.
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