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Today, the crypto market has seen impressive gains, with its overall value jumping 5% to reach $2.28 trillion. Bitcoin, the largest cryptocurrency, rose 5% to touch $65,810, while Ethereum, Solana, and XRP also showed strong growth. So, what is driving this Bitcoin rally? Let’s dive into the main reasons.
Kamala Announces Her Support To Crypto
In a significant move, U.S. Vice President Kamala Harris has revealed plans to create a regulatory framework for cryptocurrencies. This effort aims to protect investors, especially within the Black community, and to make the crypto market a safer space for wealth building.
Harris’s plan, part of her broader “Opportunity Agenda,” is boosting confidence in the market. Clearer rules could lead to broader adoption and more stability, making Bitcoin more appealing to both new and seasoned investors.
Growing Buy Demand Across Exchanges
CryptoQuant CEO recently highlighted an interesting shift in the market. Currently, there are more buy orders than sell orders across major crypto exchanges, marking a change from past trends. From 2020 to 2022, sell orders often outpaced buy orders, which created a downward pull on Bitcoin’s price.
This recent switch, with buyers in the lead, suggests stronger confidence in Bitcoin’s future value, which is helping to push prices upward.
Increase in Stablecoin Liquidity
Another factor supporting Bitcoin’s rise is the boost in stablecoin liquidity. Stablecoins like Tether (USDT) and USD Coin (USDC) now make up $169 billion of the market cap, allowing for more buying power. Many investors hold these stablecoins on exchanges to buy Bitcoin quickly when prices look promising.
This liquidity means more buyers are ready to jump in, helping keep the market active and driving Bitcoin’s price up.
October’s Positive Record for Bitcoin
Historically, October has been a strong month for Bitcoin. Over the years, Bitcoin has often seen gains around this time, with some October increases reaching up to 60%. Investors are eyeing this trend again, expecting another potential rise as the month progresses, which adds to the current excitement.
Economic Indicators Favoring Digital Assets
Macroeconomic factors are also playing a role in Bitcoin’s ascent. While inflation concerns linger in traditional markets, Bitcoin has remained resilient, even as U.S. CPI and PPI reports indicate price increases.
This shift is leading some investors away from traditional assets and into digital ones like Bitcoin.