Bitcoin Price – Bitcoin Surges Past $64,000: What’s Driving the Momentum?

Bitcoin Price – Bitcoin as a Hedge Against Economic Uncertainty: Insights from BlackRock

Bitcoin Price – For the first time in three weeks, Bitcoin (BTC) surged above $64,000 before retreating to approximately $63,450 during Friday morning European trading hours. This movement reflects a 2% increase in the past 24 hours and an impressive 10% rise over the past week, signaling renewed interest in the cryptocurrency.

Ethereum Follows Suit with Strong Gains

Ethereum (ETH) also experienced notable gains, trading at $2,550—up 5% in the past 24 hours and 9% over the last week. This upward trend highlights the broader bullish sentiment in the crypto market, particularly for leading cryptocurrencies.

Significant Inflows Boosting Market Rally

The recent momentum coincides with substantial inflows into Bitcoin and Ethereum spot exchange-traded funds (ETFs), which have further fueled the market’s rally. According to data from SoSo Value, Bitcoin spot ETFs witnessed a net inflow of $158 million on Thursday. Notably, Ark Invest and 21Shares’ ETF (ARKB) led the inflows with $81 million in a single day. Fidelity’s Bitcoin ETF (FBTC) also recorded significant gains, with a net inflow of $49.8 million. Ethereum spot ETFs have not been left behind, as BlackRock’s ETF (ETHA) attracted a net inflow of $5.2 million on the same day.

Analysts Optimistic About Continued Rally

While the influx of capital into Bitcoin and Ethereum ETFs indicates growing investor confidence, analysts are increasingly optimistic about the potential for a sustained rally. Bob Wallden, Head of Trading at Abra, expressed in a note to Decrypt that the market is showing signs of a prolonged bullish trend. He stated, “Crypto is trading at month’s highs, and the market is set for a stronger rally. News flow is bullish, showing consensus that the current trend is just starting.” Wallden noted that October typically favors Bitcoin, projecting that it could exceed $74,000 by year-end if the current momentum persists.

Liquidations Increase Amid Price Surge

The recent rise in Bitcoin’s price has led to a wave of liquidations in the market. Over the past 24 hours, 58,848 traders were liquidated, resulting in losses totaling $156.04 million. Short positions were hit the hardest, with $105.34 million liquidated, while long positions saw $50.43 million in liquidations, according to CoinGlass data.

Market Capitalization and Moving Averages

Alex Kuptsikevich, Senior Market Analyst at FxPro, noted that the crypto market’s total capitalization increased by 3.2%, reaching $2.21 trillion. With Bitcoin breaking above $64,000, it is approaching a critical test of the 200-day moving average, which is considered an emotionally significant resistance level. Surpassing this could pave the way for further gains, with potential targets set at $66,000 and $68,000.

Solana’s Remarkable Recovery

Kuptsikevich also pointed out the surge in Solana’s (SOL) price, which rallied 20% from its lows prior to the Federal Reserve meeting. He noted, “In the daily timeframe, the coin has consolidated above the 50-day moving average and is approaching the 200-day (around $154) at current levels near $150.”

Bitcoin as a Hedge Against Economic Risks

BlackRock highlighted Bitcoin’s potential role as a hedge against geopolitical risks and economic uncertainty. They noted that while Bitcoin has shown instances of short-term co-movements with equities and other “risk assets,” its fundamental drivers are markedly different over the long term. BlackRock stated, “As the global investment community grapples with rising geopolitical tensions, concerns over the state of U.S. debt and deficits, and increased political instability around the world, Bitcoin may be seen as an increasingly unique diversifier against some of these fiscal, monetary, and geopolitical risk factors investors may face elsewhere in their portfolios.”

FAQ: Bitcoin and Ethereum Market Surge