As October comes to an end, Bitcoin broke through the $73,000 mark this morning, approaching its all-time high before falling back. Is this a trend reversal or a healthy correction?
(Previous Summary:
The end of the era of high returns in the US stock market? Analyst warns of 3% future returns in the next ten years.
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(Background:
Reviewing history: Is Bitcoin repeating past bull market cycles?
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Table of Contents
Trend Reversal or Healthy Correction?
Rise in Cryptocurrency Concept Stocks
Gold Reaches Another All-Time High
After reaching a new all-time high of $73,787 in March this year, the price of Bitcoin has been fluctuating and dropped to a low of nearly $48,000. However, with the Federal Reserve initiating interest rate cuts, the upcoming US election (November 5th), and the optimistic sentiment among investors for a general increase in October, Bitcoin has seen a surge…
Bitcoin broke through the $72,500 mark at midnight and reached a high of $73,650 at 3 AM, falling just $150 short of its all-time high. However, selling pressure emerged afterward, and at the time of writing, it was reported at $72,274, with a 3.6% increase in the past 24 hours.
Bitcoin trend. Image source: OKX Spot
As for whether Bitcoin is currently experiencing a trend reversal or a healthy correction, it is currently difficult to determine. However, it is worth noting that according to Coinglass data, Bitcoin’s open interest on the entire network has reached $43.32 billion, once again hitting a new all-time high, which most likely represents the possibility of even greater market volatility.
In the past 24 hours, the total amount of liquidations in the cryptocurrency market was approximately $255 million, with over 59,000 people being liquidated. Although the overall liquidation volume is not too large, it is expected that the volatility may further increase.
Rise in Cryptocurrency Concept Stocks
In addition, in the US stock market, the four major indices had mixed performance on the 29th, with the Nasdaq Composite Index setting a new closing high. Google’s parent company, Alphabet, released its earnings after the market closed, which showed higher third-quarter revenue than analysts’ expectations, leading to an increase in technology stocks.
The Dow Jones Industrial Average fell 154.52 points, or 0.36%, to 42,233.05 points.
The S&P 500 Index rose 9.45 points, or 0.16%, to 5,832.97 points.
The Nasdaq Composite Index rose 145.56 points, or 0.78%, to 18,712.75 points.
The Philadelphia Semiconductor Index rose sharply by 2.31% to 5,332.17 points.
At the same time, with Bitcoin being just a step away from its all-time high, cryptocurrency concept stocks have also performed well recently:
MicroStrategy, the dominant holder of Bitcoin, saw its stock price surpass $266, reaching a new high for the year.
Coinbase, a US-listed exchange, has seen a 6.73% increase in its stock price in the past five days, closing at $219.
Bitcoin mining companies have also performed well, with Riot Platforms, CleanSpark, and Marathon Digital all experiencing decent gains recently.
Gold Reaches Another All-Time High
Furthermore, due to factors such as the US election, interest rate cuts by the Federal Reserve, the end of negative interest rates in Japan, and geopolitical conflicts in the Middle East, the global capital market’s risk aversion sentiment has continued to rise. As a traditional safe-haven asset, the price of gold has also been on the rise this year, reaching $2,778 per ounce at the time of writing, once again setting a new all-time high.
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