On October 29th, optimism spread in the cryptos market as bitcoin surged above $71,000. At the time of writing,$Bitcoin (BTC.CC)$ it is up 1.61% to $71,022.18, with a nearly 5% increase in the last 24 hours; $Ethereum (ETH.CC)$ ethereum is up 1.99% at $2,619.98.

Hong Kong stocks, cryptos spot, futures, and ETFs all rallied.$Harvest Ether Spot ETF (03179.HK)$,$CSOP Ether Futures ETF (03068.HK)$,$Bosera HashKey Ether ETF (03009.HK)$and$Bosera HashKey Bitcoin ETF (03008.HK)$N/A.$Samsung Bitcoin Futures Active ETF (03135.HK)$and$CSOP Ether Futures ETF (03068.HK)$Please use your Futubull account to access the feature.$Harvest Bitcoin Spot ETF (03439.HK)$Please use your Futubull account to access the feature.$ChinaAMC Bitcoin ETF (03042.HK)$ All rose more than 4%.

Key Focus

• Bitfinex analyst: Bitcoin is expected to usher in a "perfect storm" and is expected to hit a new all-time high in November.

Bitfinex analysts state that the possibility of Trump winning the presidential election, coupled with historically bullish market conditions, might create a "perfect storm" for price action, potentially pushing Bitcoin to a new all-time high next month. The convergence of election uncertainty, the "Trump trade" narrative, and favorable fourth-quarter seasonal factors has created a perfect storm for Bitcoin, making it an exciting period regardless of price trends in the next two weeks before the election.

Analysts suggest that despite significant fluctuations in Bitcoin due to Middle East geopolitical turmoil and other macroeconomic issues in the USA, the expectation of Trump's possible victory in the November 5th election has led to a sharp price rebound.

• The Trump family's crypto project, World Liberty Financial, plans to issue stablecoins, with the first token sale raising 14 million US dollars.

Sources say that the Trump family's crypto project World Liberty Financial (WLFI) plans to issue a stablecoin, raising $14 million in its recent initial token sale. The project plans to create and issue its own stablecoin, which is still under development and may take some time to launch. Sources say that the team is still figuring out how to ensure the security of the financial product before pushing it to the market. Another source mentions that the team is concurrently developing key components of World Liberty Financial, including the stablecoin, to ensure these functionalities can be launched at the appropriate time.

• Report: Bitcoin experiences rebound in volatility driven by geopolitical tensions and Trump election trades, with implied volatility reaching up to 100 daily after election day.

According to the Bitfinex ALPHA report, Bitcoin (BTC) rebounded last week by 6.2% following fluctuations driven by geopolitical tensions and Trump election trades. Election expectations have led to active options trading, with implied daily volatility potentially reaching 100 after election day. Despite short-term volatility increase, Bitcoin has risen by 30% since the September low.

• Viewpoint: Deficit spending and declining interest rates drive global liquidity expansion, benefiting bitcoin and related markets.

Chief analyst Mitchell Askew of mining company Blockware mentions that deficit spending and lower interest rates are driving global liquidity higher. Investors are concerned about long-term high inflation, evidenced by poor performance in bonds since the rate cuts in September. Consequently, investors are turning to the Bitcoin market, with trading in Bitcoin mining stocks currently in a "BETA" state. Askew adds that some Bitcoin miners are also benefiting from diversification into the fields of artificial intelligence and high-performance computing.

• Tyr Capital predicts: Bitcoin may rise before the US election, but post-election will be affected by profit-taking, yet remains bullish in the medium term.

Tyr Capital's Chief Investment Officer Edouard Hindi stated that the price of Bitcoin may surge significantly before the US election on November 5th. However, there might be selling pressure post-election due to profit-taking. Regardless of the election outcome, BTC may regain momentum in the medium term and reach a new high in 2024.

• VanEck expects Bitcoin to become a global reserve asset by 2050.

VanEck predicts that by 2050, Bitcoin will become a global reserve asset, with a price potentially reaching $3 million.

• Arthur Hayes: Maelstrom invests 5% of funds in USDe, holding a large number of long positions in cryptos.

Digital asset investment fund Maelstrom's Chief Investment Officer and BitMEX co-founder Arthur Hayes is using the USDe stablecoin from Ethena Lab to hedge uncertainty while maintaining a significant bullish bet on Bitcoin, Ether, and other cryptocurrencies. "Considering the uncertainty, Maelstrom has allocated 5% of funds to staked USDe, yielding about 13%. We hold large long positions in Bitcoin, Ether, and other tokens."

• Bitcoin ETF holdings are close to a milestone of one million coins, with Bitcoin possibly reaching $0.1 million by the end of the year.

The US spot Bitcoin ETF is expected to purchase its first one million coins as early as this week, as traders prepare for potential bullish crypto factors in November. These bullish factors include the US election, possible Fed rate cuts, and Russia lifting the Bitcoin mining ban - all unfolding in November.

According to data from Apollo and SoSoValue, the current issuer of the USA spot bitcoin ETF holds 976,893 bitcoins worth over $66.2 billion, nearly 5% of the $1.34 trillion bitcoin market cap. The spot bitcoin ETF needs a net inflow of $1.55 billion (to buy an additional 23,107 bitcoins) to reach this milestone. To achieve this goal this week, an average daily net inflow of $0.301 billion is needed.

In addition, Henrik Andersson, Chief Investment Officer of Apollo Capital, believes that the 'key deciding factor' determining whether the crypto market will rise is Trump's victory: 'If he really wins, we believe the momentum of risk assets may drive bitcoin to $0.1 million by the end of the year.' (Cointelegraph)

• Financial Times: Crypto exchange platforms expand into the derivatives market to attract cautious investors.

According to the Financial Times of the United Kingdom, crypto exchange platforms are rapidly expanding into the derivatives market in hopes that stricter regulations and promises of high leverage returns will attract cautious investors. The latest data shows that crypto derivative trading accounts for 71% of total digital asset trading volume, with the total open contract amount surpassing $40 billion for the first time, highlighting the dominance of the derivatives market.

Market leader CME Group has seen record trading volumes and open positions this year, actively expanding its product line. The newly launched Bitcoin Friday futures contract is specifically timed to match the New York trading cycle, further meeting the needs of institutional investors. The derivatives track is attracting a large number of new players. Dutch crypto derivatives exchange D2X is set to launch in November, while London's One Trading and GFO-X plan to open in early 2025. Kraken has established a trading platform in Bermuda this month, directly competing with CME Group, Binance, and Bybit.

• Forbes: Global central banks are increasing research efforts on bitcoin, paying attention to its potential impact on traditional monetary policies.

According to Forbes, the latest research shows that major financial institutions, including the Federal Reserve Bank of Minneapolis, the European Central Bank (ECB), and the International Monetary Fund (IMF), are increasing their research efforts on Bitcoin. These institutions are generally concerned about the potential impact of Bitcoin on traditional monetary policies. The ECB's latest research released when Bitcoin price approached $0.07 million indicates that a rise in Bitcoin price could lead to wealth redistribution effects, benefiting early holders while reducing purchasing power for other social groups.

The Minneapolis Fed warns that Bitcoin's existence may affect the government's ability to sustain budget deficits. The IMF, in its 2023 policy document, particularly emphasizes that crypto assets may weaken the effectiveness of monetary policies in emerging markets. The IMF suggests that countries strengthen regulations while focusing on enhancing the credibility of their monetary policy frameworks rather than implementing outright bans. These studies indicate that central banks worldwide are reevaluating the challenges Bitcoin poses to traditional financial systems.

Editor/rice