The total crypto market cap gained $80 billion on Thursday to hover about $3.8 trillion during the mid-North American trading session. Bitcoin (BTC) price rallied over 2% during the past 24 hours to reach a range high of about $111,295 before retracing to trade around $110,275 at press time.
Binance coin (BNB) and Solana (SOL) led the wider altcoin market in mild recovery on Thursday. Following the sudden crypto rebound, around $366 million was liquidated from the leveraged crypto market.
Main Reasons Why Crypto Gained Today?
Regulatory Goodwill from the United States
On Thursday, the crypto community celebrated the announcement that former Binance CEO Changpeng Zhao (CZ) has been pardoned by President Donald Trump. According to President Trump, the war on crypto orchestrated by the Biden administration is over.
Furthermore, a bipartisan group has been pushing to pass the Clarity Act to enhance crypto legislation in the United States.
Trade War Certainties amid Anticipated Fed’s QE
The White House announced that President Trump will meet with China’s President Xi next week. Ahead of next week’s meeting, Treasury Secretary Scott Bessent is expected to meet with China’s vice premier on Friday, thus increasing the odds of a trade deal.
Meanwhile, the Federal Reserve is expected to begin its Quantitative Easing (QE) next week. Ahead of the anticipated Fed rate cut next week, CNBC noted that the Fed $1.5 trillion following the October and November rate cuts.
Capital Rotation from Gold Amid ‘Uptober’ Narrative
Following the recent gold retrace, calls for capital rotation to Bitcoin and the wider crypto market have increased. With only 7 days remaining till the end of October, Bitcoin and the wider crypto market are expected to gain more bullish momentum, fueled by rising institutional demand.
Can BTC Price Reach New ATH By Halloween 2025?
From a technical analysis, the Bitcoin price has been forming a market reversal pattern following the recent capitulation.
In the four-hour timeframe, the BTC/USD pair has been forming a potential inverse head and shoulders pattern coupled with bullish divergence of the Relative Strength Index (RSI). As such, BTC price has a high chance of reaching a new all-time high by Halloween 2025, unless it consistently falls below the support level around $106.5k.