NYDIG Identifies Factors Sustaining Bitcoin’s Rally

Since the beginning of the year, Bitcoin has appreciated by 49.2%, demonstrating the best performance among key assets. According to NYDIG, several drivers could extend this upward momentum into the fourth quarter.

NYDIG: Bitcoin remains the best-performing asset so far this year with a year-to-date gain of 49.2%. The upcoming US election on Nov. 5 will play a big part in market performance for Q4, and expects larger gains if Trump wins. Q4 is traditionally a bullish period for BTC and… pic.twitter.com/8jYmktA116

— Wu Blockchain (@WuBlockchain) October 7, 2024

At the end of the third quarter, the cryptocurrency market received support from global monetary easing and stimulus announcements by Chinese authorities.

Experts are convinced that digital gold is currently in a position similar to where it was in the last two cycles.

“While investors may be disappointed with the range-bound trading over the past six months, rest assured that compared to previous phases, Bitcoin is exactly where it was at this time in the previous two,” analysts noted.

October to December is traditionally a bullish period for the asset, and there are several factors that could allow history to “rhyme,” experts indicated.

Among them is the upcoming US election on November 5. A victory for Republican candidate Donald Trump would lead to significant growth, according to specialists.

“While both candidates will improve their stance on cryptocurrencies compared to Joe Biden’s administration, Trump, if victorious, will provide more significant growth for the asset class, given his comprehensive endorsement of the industry,” the review stated.

Experts noted the increased correlation of digital gold with the US stock market. In the third quarter, the price correlation over a 90-day period reached 0.46.

“The level is still low. This means that Bitcoin offers significant diversification benefits for multi-asset portfolios,” analysts indicated.

In the early hours of October 7, the price of the first cryptocurrency approached the $64,000 mark. The drivers were positive US labor market data last Friday and expectations of a Federal Reserve rate cut in November.

Previously, Canaccord noted that a Bitcoin rally is inevitable.