Bitcoin Nears $70K Amid Easing Global Tensions and Election Hopes

In line with a recent CNF update revealing that over 320,000 active Bitcoin addresses interacted near its previous all-time high, Bitcoin’s price rose 3.2% between October 27 and October 28, briefly reaching $69,200, although resistance stalled further gains. Signaling strong holder sentiment, Bitcoin enthusiasts remain optimistic about a sustained rally, bolstered by recent socio-political and economic developments.

For instance, oil prices fell over 5.5% on October 28 as the conflict between Israel and Iran did not disrupt oil production or transportation. Amid ongoing uncertainty in the Middle East, some traders are exploring alternative assets like Bitcoin, as regional tensions persist.

Inflation and Election-Driven Risk Aversion Boost Bitcoin’s Appeal

Amid high inflation, traditional investors may look to assets like Bitcoin. Initially, rising prices can boost corporate profits, yet inflation often dampens consumer spending over time.

As of today, Bitcoin (BTC) is trading at $72,248.12, with a 1.63% increase over the past day and a 8.63% rise in the past week. See BTC price chart below.

On October 31, the latest U.S. inflation report will be released, with analysts predicting a 0.3% rise in the Core PCE index for September, up from 0.1% in August. With U.S. elections less than 10 days away, investor caution remains high, pushing many toward cash and short-term bonds.

The post-election environment could see a shift back to riskier assets, including Bitcoin, particularly as Bitcoin’s fixed supply contrasts with inflationary concerns. As discussed in a recent CNF update, potential regulatory clarity under a Kamala Harris administration could also add appeal to digital assets.

Nevertheless, even if Bitcoin doesn’t reach new highs in 2024, early 2025 may provide favorable conditions for growth.