“Perfect Storm” Brewing: Bitfinex Analysts Predict Bitcoin All-Time High After U.S. Election

Bitcoin has hit a new high of $71,000, marking its highest price since mid-May. The surge comes as the U.S. presidential election approaches, with market excitement building over Donald Trump's increasing odds of winning.

Traders expect more price surges in Bitcoin amid rising trading volumes and increased market demand.The convergence of these factors has created what analysts call a perfect storm" for Bitcoin's continued rise.

Bitcoin Breaks $71,000 Ahead of U.S. Election

Bitcoin's price crossed the $71,000 mark during Asian trading hours, showing a sharp increase of nearly 4%. This rise follows two weeks of robust inflows into U.S. Bitcoin ETFs.

CoinShares' data recorded an inflow of $901 million as of October 25, while Farside Investors showed net inflows of $2.1 billion as of October 18.

The latest data fromCoinMarketCapshows that trading volumes doubled, reaching $47.8 billion. Notably, most of this interest comes from institutional investors.

Analysts attribute part of this rally to Donald Trump's rising chances of winning the November 5 election. Bitfinex's recent report indicates that the Trump trade" narrative is strengthening, leading to increased buying.

The correlation between Trump's election odds and Bitcoin's upward trajectory has increased," the report added.

Huge Short Liquidations Follow Bitcoin's Surge

As Bitcoin broke through the $70,000 resistance level, a massive liquidation of short positions occurred.

Data from CoinGlass reveals that over $143 million worth of short positions were liquidated in just 12 hours. These are bets made against the rising price of Bitcoin, and as traders closed their losing positions, the price spiked higher.

Short positions on Bitcoin alone accounted for $73 million of these liquidations, followed by $39 million on Ethereum.

The broader crypto market saw positive movement, with Dogecoin (DOGE) surging 15%, largely due to Trump's popularity. Other altcoins like Shiba Inu (SHIB), Solana (SOL), and Cardano (ADA) also experienced gains.

Bitfinex believes these movements reflect growing confidence in a bullish market as the U.S. election approaches.

Perfect Storm for Bitcoin's Future Rally

Bitcoin's upward momentum is part of a broader narrative around the election and market conditions.Bitfinex report added that the market is forming a perfect storm" that could push Bitcoin to new all-time highs after the election.

The analysis said this promises an exciting period ahead regardless of noisy price movements heading into the election in two weeks."

This view is supported by growing open interest in Bitcoin options, which reached a record $41.7 billion on October 29.Traders are increasingly positioning for a post-election rally, with many expecting Bitcoin to surpass its March all-time high of $73,700.

At the same time, Bitcoin's golden cross" has appeared, and its price is above the indicator. This means that the 50-day moving average has crossed above the 200-day average.

Moreover, the MACD is above its signal line, supporting the bullish momentum. Many traders view this as a sign of further gains in the coming weeks.

The combination of these technical signals, rising demand, and theupcoming election has many convinced that Bitcoin is on track for another significant price breakout.

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