Bitcoin: Aiming for Explosive End of Year?
Bitfinex analysts believe that Bitcoin could reach new highs after the November US presidential elections, benefiting from an ideal context marked by political and economic uncertainties.
The ‘Trump trade’ is gaining importance, with speculations about a Donald Trump victory fueling a bullish momentum in the crypto market, causing the price of Bitcoin to surge nearly 5% in 24 hours to reach $71,475.
Open interest in Bitcoin futures markets has reached a record $41.7 billion, indicating a strong demand for leveraged exposure.
The analysts from Bitfinex discuss an ideal context for Bitcoin, which could soar to new heights after the November US presidential elections.
In a period where political and economic uncertainties abound, the potential for a Donald Trump victory, combined with historically favorable market conditions at the end of the year, seems conducive to a significant rise in the cryptocurrency’s price.
The Power of the ‘Trump Trade’ and Bitfinex Predictions
In their market report on October 28, the analysts highlight that the growing interest in Bitcoin coincides with the rise of the ‘Trump trade,’ a phenomenon where speculations about a Trump victory fuel a bullish momentum for the crypto market. As the election approaches, with geopolitical tensions in the Middle East and macroeconomic factors in the United States shaking the markets, Bitcoin has seen its price jump to $71,475, a 5% increase in 24 hours.
On the Polymarket platform, Trump holds an over 30% lead on Kamala Harris, strengthening the ‘Trump trade’ in crypto investment circles, where anticipation of the former president’s return echoes an increase in demand for Bitcoin. According to Bitfinex analysts, this anticipation could contribute to a price surge as soon as next month, with Bitcoin only 3% away from its March all-time high of $73,700.
Record Open Interest and Bitcoin Options Explosion
What distinguishes the current Bitcoin situation is also a record open interest in futures markets, reaching $41.7 billion on October 29, according to CoinGlass data. This figure reflects sustained demand for leveraged exposure to Bitcoin, where investors and speculators position themselves to maximize potential gains. Bitfinex analysts also note an accumulation of long call options positions on Bitcoin, targeting the end of the year. These positions indicate marked optimism for a post-election price increase.
Bitcoin: Aiming for an Explosive End of Year?
As Bitcoin approaches historical levels, all the factors mentioned by Bitfinex suggest a possible ‘perfect storm’ for a new surge. Geopolitical conditions, the potential for the ‘Trump trade’ effect, and the positive seasonality of the end of the year converge to make this context a key moment for Bitcoin. It remains to be seen whether this rally will materialize or if the election will bring new waves of volatility for the iconic cryptocurrency.
