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In early European trading on Saturday October 12, the total cryptocurrency market capitalization soared 2% over the past 24 hours to around $2.28 trillion. The altcoin industry experienced a knee-jerk reaction after the Bitcoin (BTC) price surged to a range-high of around $63,361 during the New York session on Friday.

Cryptocurrency's significant rebound over the past 24 hours has not led to significant liquidations. Additionally, after Bitcoin's price dropped below $59,000 for the first time in three weeks, more cryptocurrency traders expected increased volatility over the weekend.

The main forces behind today's cryptocurrency boom

Demand for whales is rising again

After several days of losses, the net cash inflow of US spot Bitcoin ETFs exceeded 0.348 billion dollars on Friday. BlackRock's IBIT had the highest cash inflow of around $0.1407 billion on Friday, followed by Fidelity's FBTC, which was around $0.117 billion.

Meanwhile, the spot Ether ETF issuer recorded a net cash inflow of around $2 million on Friday. As a result, the net supply of bitcoins on cryptocurrency exchanges has shrunk by around 10,000 units in the past week, while the supply of ether has shrunk by around 24,600 in the past 24 hours.

Bias towards technical aspects

According to famous cryptocurrency analyst Benjamin Cowen (Benjamin Cowen), the price of Bitcoin has regained its key point after a recent reboundSupport level. From a technical perspective, the Bitcoin price has formed a fractal pattern similar to the bull market breakout in the second half of last year.

Continued gains above $66,000 will trigger the return of FOMO traders, thereby helping push Bitcoin's price to an all-time high.

This situation will affect the entire altcoin industry, leading to a sharp rise in cryptocurrencies over the next few months.

Fourth quarter Bulls

After Bitcoin's price rebounded from below $59,000 to a high above $63,000, fears of a further decline in the cryptocurrency declined markedly. Bitcoin's Fear and Greed Index soared from 32% (indicating market fear) to 49% today, representing the neutrality of the crowd over the past 24 hours.

The bullish sentiment in October is gradually picking up, and the Bitcoin price is expected to continue its upward trend in the near future.

Furthermore, the US 2024 general election will be held in about three weeks, and historical data shows that this has already sparked bullish sentiment.

Furthermore, gold and major stock indices have been leading bullish breakouts recently.