Bitcoin Rebounds from $65K as Investors Capitalize on Price Dip
On October 23, Bitcoin's volatility created an opportunity for investors in BlackRock's IBIT, driving $317 million in fresh inflows despite a 3.3% drop in Bitcoin’s value. As the cryptocurrency tested a critical support level of $65,000, investor sentiment was influenced by concerns surrounding the upcoming U.S. Presidential Election and potential shifts in Federal Reserve policy.
Bitcoin currently at $67,649, recovering from a session low of $65,161, as the broader crypto market lost 1.45% of its total market capitalization, which settled at $2.242 trillion. A combination of rising U.S. Treasury yields and the 1.60% decline in the Nasdaq Composite Index signaled investor caution toward risk assets, including Bitcoin.
Market jitters can be attributed to tightening monetary policy concerns and heightened political uncertainty as Vice President Kamala Harris and former President Donald Trump continue their close race. Recent polls show Harris with a slim 1.7-point lead, though betting markets like Polymarket give Trump a higher chance of victory at nearly 60%. A Trump win could introduce inflationary pressures, but his crypto-friendly stance might drive long-term demand for digital assets like Bitcoin.
Despite the prevailing uncertainty, BlackRock’s IBIT recorded significant inflows, helping Bitcoin rebound from the $65,000 level. Other ETFs, including Grayscale’s Bitcoin Trust, followed suit with modest gains, while caution remained evident with outflows in competing ETFs like ARKB and VanEck.
Should Bitcoin breach the $69,000 resistance level, it may set the stage for a run toward $70,000, with bulls eyeing a potential retest of the all-time high of $73,808. However, a drop below $66,500 could renew bearish pressure, threatening a deeper pullback to $64,000.
With the market still digesting macroeconomic and political developments, Bitcoin’s path remains uncertain, though the strategic movements of major funds like BlackRock’s IBIT signal that investors are positioning for both opportunities and risks ahead.