Bitcoin price has recorded its second week of consecutive gains; ending the week steady above the resistance-turn-support zone of 68,000. On Friday, it hit a level last recorded in late July after rallying by 17% in about a week. At the time of writing, BTC was trading at $68,440.47.
Risk-on sentiment continues
The risk-on mood that has increased the attractiveness of bitcoin and other cryptocurrencies in recent sessions is also observable in the US stock market. In fact, the Dow Jones Industrial Average index and S&P 500 both ended the week at a fresh record high. At the same time, Nasdaq 100 held steady above $20,000 as the bulls eyed the all0time high reached in mid-July 2024 at $20,702.
Signs of a resilient US economy have contributed to the rallying in the cryptocurrency market and the overall risk-on mood. Recent data, including September’s jobs report and retail sales came in better than expected. The resultant surge in consumer confidence has seen the US dollar record three consecutive weeks of gains. On Thursday, it extended gains to a level last hit in early August before slightly pulling back on Friday.
Additionally, rate cuts by the Federal Reserve have contributed to the positive market sentiment. As seen on CoinMarketCap, the fear and greed index is at a greed level of 60 after being at a neutral of 46 in the past week. During its September meeting, the US central bank cut interest rates by 50 basis points; the first in four years. Notably, an environment of lower interest rates tends to attract investors to riskier assets like cryptocurrencies.
US election and Bitcoin ETF inflows
Markets are now keen on the next Fed meeting on 7th November, just two days after the closely watched US elections. In addition to the anticipated rate cut of 25 basis points, a Trump win will likely yield further gains for cryptos.
The presidential candidate not only owns a crypto venture but he has also openly held a pro-crypto stand. According to Polymarket, Trump’s chances of winning the elections are at 59.9% against Kamala Harris’ 40.1%. This forecast already has more traders investing in the crypto market with elections in the horizon.
To top it off, Bitcoin ETF inflows are on the rise. According to SoSoValue, the daily total net inflow was $273.71 million as at 18th October. Cumulatively, the net inflows year-to-date are…