Bitcoin breaks $70K amid ETF inflows and election optimism: QCP Capital

October 29, 2024
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Bitcoin breaks $70K amid ETF inflows and election optimism: QCP Capital

Bitcoin has broken the $70,000 mark, gaining 3.5% since the last market update and marking a seven-month high. According to QCP Capital, this latest rally is fueled by a surge in institutional inflows, particularly in Bitcoin spot ETFs, which saw nearly $1 billion in inflows last week alone.

The positive momentum has extended to crypto-related stocks, with Core Scientific (CROZ) gaining 6.2% after Jefferies upgraded its rating to "buy." Other companies at the intersection of AI and crypto, including IREN, Hut 8, Bitdeer, and TeraWulf, are also benefiting from increased demand for AI alongside Bitcoin's rally.

In a further sign of institutional interest, Emory University disclosed a $15 million position in the Grayscale Bitcoin Mini Trust, making it the first university endowment fund to reveal an investment in the trust. This move underscores a growing acceptance of digital assets among traditionally conservative funds.

Additionally, election-driven optimism appears to be boosting Bitcoin. QCP Capital suggests that rising odds of a Trump victory in 2024 could positively impact Bitcoin as a hedge against potential inflation and fiscal expansion. Increased volatility around election expiry has driven implied volatility to 64%, and open interest on perpetual contracts has hit yearly highs, signaling a potential for further upside.

With over $200 million in open interest at the 80,000 strike for the Nov. 8 expiry, QCP Capital projects that any dip below $70,000 could attract buyers ahead of the election. If Bitcoin maintains levels above $70,000, this momentum could continue toward a new all-time high.

At the time of writing, Bitcoin is priced at $71,137.41 after experiencing a 3.56% increase in one day, according to the data from CoinMarketCap. 

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