Will Bitcoin Reach A New High In 2024?

Those who thought ‘Uptober’ wasn’t real may have to eat humble pie soon. Bitcoin is experiencing a renewed surge, which began well before October.?

With only roughly two and a half months left until 2025, crypto enthusiasts are curious whether BTC can finish the year strong and exceed its all-time high of $73.750 (or about R1.3 million). So, what’s driving the rise, and what does it mean for the crypto market?

The key bullish factors

Let’s look at a few reasons crypto traders are talking about Bitcoin again.

‘Uptober’ theory

It’s October, and the word ‘Uptober’ keeps being mentioned. We spoke about this theory here. In summary, it’s a concept that suggests Bitcoin historically performed at the best price during October.?

This has been true since 2013, except for 2014 and 2018. One reason involves the seasonality of the US stock market. Interestingly, November (which we’re heading to) technically shows the highest price average for Bitcoin. So, history is on the right side for the crypto market.

Lower Fed rates

Not so long ago, we also discussed the historic day when the Federal Reserve (Fed) dropped its interest rate by 0.5%. The smart people who understand the behaviour of central banks see the Fed entering a dovish or rate-cutting cycle in its next few meetings.?

Generally, a trend of lower interest rates leads investors towards so-called alternative or riskier assets like cryptocurrencies, hoping for better returns.?

Upcoming US elections

Whether we like it or not, America is quite influential in the world of cryptocurrencies. Crypto analysts always look at historical trends which may seem co-incidental but prove themselves right.

So, the presidential US election is happening on Tuesday, 05 November. Again, historically, the stock market (which shares some correlation with crypto) often goes up around this period for various reasons.

Predictions say that Donald Trump will likely win this election. A Republican Party victory would be more positive for the digital currency market since Trump is the most pro-crypto compared to Kamala Harris.?

Positive on-chain metrics

While experts like to focus on external factors, internal metrics also determine the demand for a particular coin. Data from sources like Cryptoquant indicate a rise in the number of active addresses in the past 45 days. In other words, more people are joining the Bitcoin network.

Where to from here?

Based on these drivers (and with around 75 days left before 2025), Bitcoin could surpass its all-time high. We should also note it’s currently only about 8% away, which isn’t far off.

However, as with anything in the financial markets, it’s wise to tread carefully. While excitement is building about what crypto has in store, no one can be 100% certain of the future. So, be prepared for anything.?

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