The total crypto market capitalization rose 2 percent over the past 24 hours, hovering around $2.28 trillion during the early European session on Saturday, October 12. The altcoin industry experienced a knee-jerk reaction after the price of Bitcoin (BTC) rose to a high of around $63,361 during the mid-New York session on Friday.
The remarkable crypto rebound over the past 24 hours has not led to heavy liquidations. Additionally, more crypto traders expected higher volatility this weekend after the Bitcoin price traded below $59,000 for the first time in three weeks.
Major forces behind the current crypto pump
Revival of demand for whales
After bleeding in recent days, US spot Bitcoin ETFs recorded net cash inflows of more than $348 million on Friday. BlackRock’s IBIT recorded the highest cash inflow of about $140.7 million on Friday, followed by Fidelity’s FBTC with about $117 million.
Meanwhile, spot Ether ETF issuers are recording net cash inflows of about $2 million on Friday. As a result, the net supply of Bitcoins on crypto exchanges fell by approximately 10,000 over the past week, while the supply of Ether fell by approximately 24.6,000 over the past 24 hours.
Preference for technical aspects
According to a popular crypto analyst Benjamin Cowen, Bitcoin price has regained crucial support levels after the recent rebound. From a technical perspective, Bitcoin price is forming a similar fractal pattern to last year’s bullish breakout in the second half of the year.
A consistent pump above $66,000 will trigger the return of FOMO traders, pushing the Bitcoin price to its all-time high.
Such a scenario would impact the entire altcoin industry, resulting in a major crypto rally in the coming months.
Fourth quarter bulls
After the Bitcoin price recovered from below $59,000 to a high above $63,000, fears of further crypto capitulation subsided significantly. Bitcoin’s fear and greed index rose from 32 percent, indicating market fear, to 49 percent today, representing the crowd’s neutrality over the past 24 hours.
The October bullish narrative is gradually creeping back, with Bitcoin price expected to remain in an uptrend for the foreseeable future.
Moreover, the 2024 US general election will occur in about three weeks, and historical data shows that they have created bullish sentiment.
Furthermore, gold and major stock indices have led to bullish breakouts in the recent past.
