Bitcoin Price Surges to $68,000 as Traders Exploit Positive Market Sentiment Ahead of Upcoming U.S. Elections

After a challenging September, investors eagerly bought during dips, driving prices higher. However, short-term holders have been selling their coins around this $68,000 mark, creating strong resistance that might lead to a price pullback.

Bitcoin price surged to highs of $68,000 on Monday as traders factored in the upcoming U.S. elections and recent institutional interest in cryptocurrency.

What Happened: Bitcoin price surged by 11% this week, reaching a seven-day high of $68,000 on Monday. The apex cryptocurrency began the week trading around the $61,000 level.

After a challenging September that saw Bitcoin price drop from highs of over $70,000, investors began buying the dips aggressively, leading to a return to pre-September highs.

However, short-term holders have been selling their coins around the $68,000 mark, creating strong resistance that may lead to a pullback in price.

The surge in Bitcoin price was also impacted by political factors, with Polymarket data showing Donald Trump’s chances of winning at 60.9% and Kamala Harris at 39.1%. This creates a scenario where Trump is favored to win the election.

According to some traders, the political climate is enhancing Bitcoin’s appeal among investors, especially in the event of a Trump victory.

Several key events occurred last week that had an تأثير on the crypto market. Here’s a summary of the most important ones:

Despite the surge in price, some traders expressed concern over a potential price dip before Bitcoin can continue its rally to new all-time highs.

Rising market volatility is making trades riskier and borrowing more expensive, especially in the event of a market downturn.

Interestingly, data from Glassnode showed that 5% of the circulating Bitcoin supply is currently at a loss, while the remaining 95% is profitable. This suggests that profit-taking may increase as prices continue to rise.

Institutional interest in cryptocurrency also remained strong last week. U.S.-listed spot Bitcoin exchange-traded funds (ETFs) experienced significant inflows, totaling $1.38 billion over three days. On Wednesday alone, the ETFs saw inflows of $456.9 million.

Also last week, the Italy government proposed raising the capital good gains tax on Bitcoin and other cryptocurrencies to 42% ahead of an expected “Bitcoin boom.” The tax would apply to gains realized within five years of acquiring the digital assets.

Currently, capital gains tax on Bitcoin in Italy is 26%, while any gains realized after five years are not taxed. The government is also planning to introduce a tax on unrealized gains for assets held in trusts.

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