Bitcoin Price Surges Past $71,500 Amid Weak US Job Data and ETF Inflows

The recent surge in bitcoin‘s price has reignited interest among investors and analysts, particularly after a period where it dipped below the $68,500 mark. The cryptocurrency’s rebound has prompted speculation about the underlying factors driving this upward momentum and whether it can be sustained in the near term.

Several catalysts appear to be contributing to Bitcoin’s recent price increase. Among the most prominent is the impact of the latest U.S. employment data. Recent reports from the Labor Department indicated that non-farm payrolls increased by just 12,500 in October, marking the slowest pace since late 2020. This was significantly lower than the market’s expectations of 115,000 and demonstrated a sharp slowdown from the previous month. The subdued job growth has fueled expectations of a 20 basis point cut in the Federal Reserve’s interest rate in their upcoming meeting. Prior to this data, the market had braced for robust job figures similar to September’s, which might have led to a pause in the Fed’s rate cut plans for November.

The anticipation of lower interest rates has generally been favorable for market sentiment, leading to a weaker U.S. dollar and rising prices in both equities and cryptocurrencies. As a result, investors are now forecasting two more rate cuts before the year ends, with the first potentially happening at the FOMC meeting next week and another in December. Historically, lower interest rates have been associated with a higher risk appetite among traders, and many are betting on this trend to buoy the values of Bitcoin and other major Altcoins.

Another aspect influencing Bitcoin’s pricing is the looming U.S. Presidential Election. As the election date on November 5 approaches, financial markets are observing the developments closely. Current data from Polymarket suggests a 58.2% likelihood of Donald Trump winning, yet analysts predict that Bitcoin could maintain its steady trajectory regardless of whether Kamala Harris secures the victory. Nonetheless, Trump’s familiarity with and endorsement of Bitcoin might offer additional support for the cryptocurrency if he wins.

In parallel, the notable influx into the U.S. Spot Bitcoin ETFs has sparked renewed optimism among market participants. Institutional investment continues to grow, underscoring a broader acceptance and interest in digital assets. Recent data from Farside Investors highlighted that the U.S. Spot Bitcoin ETF attracted inflows totaling $2.24 billion this past week, with BlackRock’s Bitcoin ETF being a significant contributor to this figure. Although there was a slight outflow of $55.7 million on Friday, the overall trend points to increased institutional focus on the crypto sector, further uplifting Bitcoin’s price.

Bitcoin’s traditional “Uptober” performance has once again played out this year, with prices following historical patterns of positivity throughout October. This period has boosted investor sentiment as the crypto market often rallies over the weekends. As investors regain confidence in digital currencies, the anticipation of upcoming macroeconomic events might continue to fuel this trend. Historical trends have shown that cryptocurrencies, including Bitcoin, often perform well in the final quarter of the year, and analysts are hopeful that btc might reach new highs soon.

Presently, Bitcoin’s price is slightly elevated, trading at around $69,200, with a 24-hour peak reaching $71,300. Data from CoinGlass indicates that the Bitcoin Futures Open Interest remains relatively stable, signifying that investors are still awaiting clearer signals before making new investments.

Moreover, recent Bitcoin price predictions suggest that the cryptocurrency could potentially reach a high of $86,800 this month, adding to the market’s optimism. The upcoming U.S. election, along with the FOMC meeting and other prominent market events, has analysts bullish on Bitcoin’s ability to continue its upward trajectory in the coming days.

Additionally, a report from Forbes has caught investors’ attention by showing that Bitcoin exhibited lower volatility compared to major Wall Street stocks such as Tesla, AMD, and NVIDIA during October. This information challenges previous assertions that Bitcoin is inherently more volatile than traditional assets like stocks, providing further confidence among investors in the crypto market.