TLDR:
- Bitcoin surpassed $71,000, showing its strongest daily performance in months
- BlackRock’s Bitcoin ETF attracted over $300 million in single-day inflows
- Pre-election market sentiment drove widespread crypto gains
- More than $175 million in leveraged short positions were closed out
- Altcoin market showed renewed strength with double-digit gains in some tokens
The cryptocurrency market demonstrated strength on Tuesday, October 29, 2024, as Bitcoin broke through $71,000, marking its highest price point in four months. Trading activity surged across major exchanges, with daily volumes reaching $48 billion.
Market data showed a clear shift in momentum as buyers dominated trading sessions across Asian and European markets. The price movement triggered a chain reaction in the derivatives market, forcing the closure of leveraged positions worth more than $175 million.
BlackRock’s spot Bitcoin ETF emerged as a key player in the rally, recording more than $300 million in inflows on Monday alone. October has proven to be a milestone month for institutional adoption, with total ETF inflows exceeding $3 billion across all providers.
Trading patterns suggest strong conviction behind the move, with increased activity from large-scale buyers, particularly during Asian trading hours. Data from various exchanges showed sustained buying pressure from both retail and institutional investors.
The rally comes at an interesting time in the US political calendar, with election predictions showing strong support for certain outcomes. Prediction markets indicate a 66.3% probability of specific election results, which some analysts believe is influencing trading behavior.
Technical analysts have noted several positive developments in Bitcoin’s chart patterns. A five-month trading formation has resolved to the upside, potentially setting the stage for further gains. The break above $70,000 eliminated a key resistance level that had contained prices since March.
The broader cryptocurrency market responded positively to Bitcoin’s movement. Ethereum, the second-largest cryptocurrency by market value, gained 5.3% to trade above $2,600. The rally extended to various market sectors, with some altcoins posting even stronger performances.
Meme-themed cryptocurrencies showed particular strength, with popular tokens gaining more than 10%. Bitcoin Cash rose 8%, while Avalanche and Cardano added 5.86% and 3.96% respectively. The combined market movement pushed major crypto indexes notably higher.
Options market data reveals growing optimism among traders. Contracts set to expire in early November show concentrated interest around higher strike prices, suggesting market participants anticipate further upside potential.
The institutional cryptocurrency market continues to mature, with Bitcoin ETFs accumulating substantial assets since their launch. BlackRock’s offering ranks among 2024’s most successful ETF launches across all asset classes, highlighting growing mainstream acceptance.
Market structure analysis shows Bitcoin’s dominance approaching 60%, a level historically associated with healthy market conditions. Some market observers suggest this could create favorable conditions for altcoin performance in the coming weeks.
Exchange flow data indicates renewed interest from US-based investors, though current levels remain below previous peaks. This suggests potential room for increased participation as the market continues to develop.
Price analysis identifies the $71,000-$73,000 range as a key area of interest, with technical resistance from previous trading activity. A breakthrough at these levels could open the path to unexplored price territory.
Liquidation data provides insight into market positioning, with Bitcoin short sellers experiencing $73 million in losses during the move. Ethereum-related positions saw an additional $39 million in liquidations, underlining the market-wide impact.
Trading volumes have shown consistent strength throughout October, with particularly notable activity during this latest price movement. The sustained increase in volume suggests broad-based participation in the rally.
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