Coast clear for Bitcoin to run once again?

Bitcoin surged beyond $63,000 mid-trading session on Saturday as investors relaxed following Mt Gox’s decision to postpone settlement until 2025. According to CryptoQuant statistics, long-term Bitcoin liquidations reached a record high of $300 million on Thursday—a figure not seen since 2022.

Bitcoin lost about 10% of its value between October 1 and October 11, causing holders of long positions to liquidate heavily.
Thankfully, the bulls recovered quickly enough to go on a strong rebound that peaked at about $63,1K this afternoon. Even if the price has subsequently somewhat reversed to where it is now trading, BTC has increased by 2% over the last day.

The appetite for risk remains relatively elevated. The S&P 500 and Dow Jones Industrial Average closed the week at all-time highs, After sharply rising during the previous week, the U.S. dollar index stalled around 103 index points as traders recalculated expectations of additional Federal Reserve interest rate cuts in the wake of strong U.S. jobs data and higher inflation readings.

According to a paper released on Friday by Coinbase analysts David Duong and David Han, the outcome of the US election is now the primary macroeconomic factor driving cryptocurrency values rather than monetary policy.

Chinese finance minister’s anticipated briefing on China’s fiscal policies, scheduled for Saturday may be the main driver of cryptocurrency volatility.  Coinbase Research, expects investors greater financial support for the struggling Chinese economy and financial markets, which impacts the digital asset market.

Since the April halving event, Bitcoin has been ranging sideways for almost 200 days. According to Ki Young Ju, CEO of CryptoQuant, this will be the longest sideways period following half of Bitcoin if a bull market isn’t initiated within 14 days.

However, the continuous sideways movement in Bitcoin caused STH’s realized share to decline throughout this period, according to information provided by CryptoQuant. Short-term holders are more likely to react to future price movements given that this percentage has dropped from 55% to 40% in just three months.