Bitcoin has recovered from recent weakness with a strong rally as US stocks and gold remain in bullish mode.
BTCUSD – Daily Chart
The price of BTC has recovered from a slump that threatened lower support levels and the target is now the 2021 high ahead of $70,000.
Bitcoin has been rallying again after Donald Trump’s electoral campaign started to create a gap in the polls. Investors see the former President as the most crypto-friendly of the two parties and his family even have their own project which launched recently, named World Liberty Financial.
Bitcoin is now up 15% from the October low and remains around 8% below its record high set seven months ago. Spot Bitcoin exchange-traded funds (ETFs) have now passed the $20 billion-mark in total net flows for the first time since the asset’s January launch.
Data from Farside Investors and CoinDesk showed that total net flows of Bitcoin ETFs had reached $20.7 billion on Thursday, with BlackRock’s (IBIT), and followed by Fidelity Investments’ (FBTC) leading the most popular instruments.
Markets began returning to “Trump Trades” last week which included assets such as energy stocks and companies that rely on exports. Last week also marked the largest one week inflow into BTC assets with $1.85 billion as of Friday.
“The election is just really taking the front seat in terms of price performance,” CoinShares analyst James Butterfill said. “Macro data, which typically has been driving prices, would suggest that Bitcoin’s price should fall—and it hasn’t recently”.
Bitcoin is also trying to catch up to gold as the alternative asset has soared to continued new highs. There was news that Hong Kong is set to roll out new measures to increase gold trading and position the city to be a leading international trade centre for the precious metal.
The key driver for the price of gold has been geopolitical worries over the tensions in the Middle East and Ukraine. However, there is also a premium being placed on bullion as investors fret over government spending levels.
