Bitcoin (BTC) is up by 3.0% to $61,326 this
week, marking its highest level since August 27, after briefly dipping to $57,459
on Monday. The surge is driven by several factors, including news surrounding Republican
nominee Donald Trump's new crypto venture, World Liberty Financial, which he
announced after an apparent assassination attempt. This new venture, led by his
sons, aims to offer DeFi services focused on borrowing, lending, and trading
cryptocurrencies.
Certainly, such new prominent projects in the
crypto industry inspired crypto enthusiasts. Investors have their inspiration
too. IBIT from BlackRock reported its first net inflows of $12.9 million during
the last three weeks. Together with FBTC from Fidelity and GBTC from Grayscale
all three flagship ETF of the crypto industry saw a $108.7 million inflows in a
single day. Bitcoin rose by 6.0% on Tuesday.
Additionally, stronger-than-expected U.S.
retail sales data for August have helped alleviate recession fears, bolstering
market sentiment. The S&P 500 has also hit new highs at 5671 points, adding
to the positive outlook for risk assets like Bitcoin.
Technically, Bitcoin is nearing a critical
resistance zone between $60,000 and $62,000. If BTC breaks above this level, it
could pave the way for a rally toward $87,000 to $90,000 by the end of October.
This rally could gain momentum if the Federal Reserve announces a quarter-point
rate cut in its upcoming meeting, alongside positive signals from Fed Chair
Jerome Powell regarding labor market prospects. Such an environment would
likely increase the likelihood of a bull run for Bitcoin, potentially pushing
prices beyond $62,000 by the end of this week and leading to a strong upward
move into early November.