Bitcoin Bulls Target $70,000 Again, Driven by Global Liquidity and US Election

Bitcoin Bulls Target $70,000 Again, Driven by Global Liquidity and US ElectionBitcoin bulls are once again setting their sights on the all-time high reached in March, fueled by rising optimism surrounding risk assets and the approaching US election. "Bitcoin and other crypto assets are poised for the perfect storm after six months of price consolidation this year," wrote Brett Munster of Blockforce Capital in a report

Bitcoin Bulls Target $70,000 Again, Driven by Global Liquidity and US Election

Bitcoin bulls are once again setting their sights on the all-time high reached in March, fueled by rising optimism surrounding risk assets and the approaching US election. "Bitcoin and other crypto assets are poised for the perfect storm after six months of price consolidation this year," wrote Brett Munster of Blockforce Capital in a report.

Bitcoin surged as much as 2.9% on Wednesday, hitting $68,376 before retreating slightly. The last time Bitcoin touched $70,000 was in July, while it reached a record near $74,000 in March. Global liquidity is rising again, as central banks around the world are injecting cheap capital into their economies, Munster wrote. Historically, when global liquidity has outperformed its moving average, this has been accompanied by significant upward price movements in Bitcoin.

Market optimism was further reinforced by Vice President Kamala Harris's commitment this week to supporting a regulatory framework for cryptocurrencies. This follows years of complaints from the cryptocurrency industry that US officials have chosen a path of regulation by enforcement rather than transparency. Former President Donald Trump, who is actively courting cryptocurrency supporters in his bid to replace Harris as the next president, has several cryptocurrency-related agenda items.

The policy of injecting cheap capital by global central banks and the changing political landscape in the US have created favorable conditions for Bitcoin's price increase. The market generally believes that increasing political uncertainty in the run-up to the US election could push investors toward safe-haven assets, and Bitcoin, as a decentralized digital currency, possesses unique advantages among them.

Beyond policy and political factors, Bitcoin's own technological advancements are also supporting price gains. The Bitcoin network has seen improvements in transaction speed and efficiency this year, and its application scenarios have expanded, factors that have bolstered investor confidence in Bitcoin.

However, despite the optimistic outlook, Bitcoin's price faces some challenges. First, the risk of a global economic slowdown still looms, which could affect investor appetite for risk assets. Second, regulatory policy uncertainty could also negatively impact Bitcoin's price.

Despite these challenges, Bitcoin bulls remain bullish on the future. They believe that with technological progress and increased policy support, Bitcoin will continue to attract more investors, ultimately surpassing its all-time high.

As market expectations for the US election and global liquidity continue to evolve, Bitcoin's price will remain susceptible to influence. Investors need to closely monitor macroeconomic conditions and policy changes and make investment decisions based on their individual risk tolerance.