On Wednesday (October 30) during the Asian trading session, Bitcoin prices rose again, reaching $73,620, just $157 short of its all-time high of $73,777, representing a 0.2% increase. Over the past five days, Bitcoin has strongly resisted market skepticism and surged by a total of 8%, rising 63% since the beginning of the year, far surpassing gold's 35% increase and the performance of the three major US stock indices. With the US presidential election approaching, Bitcoin has a significant opportunity to break through historical highs and attract global market attention.
Currently, Bitcoin's continued surge demonstrates its status as a safe-haven asset and an inflation hedge, attracting considerable attention from both institutional and individual investors amid growing global economic uncertainty. However, despite Bitcoin's impressive performance, the entire crypto market has not fully synchronized in its rise, with many cryptocurrencies remaining sluggish. Typical examples include ADA, XRP, and DOT, whose performance reflects a concentration of market capital flows, commonly referred to as the "vampire effect" in the industry.
On a macro level, analysts point out that the vampire effect phenomenon typically appears in the early stages of Bitcoin's new high prices because investors tend to concentrate funds on the strongest-performing assets. Historical data shows that as Bitcoin prices stabilize or growth slows, some funds may gradually shift toward other cryptocurrencies. The market expects this round of Bitcoin's capital-attracting effect to gradually subside after the US election, potentially leading to a more apparent divergence trend by early 2025.
Additionally, investors' expectations regarding US monetary policy may also influence the performance of the crypto market. If the Federal Reserve continues to maintain the current interest rate level or delay rate increases, it may further enhance the appeal of crypto assets, driving funds into Bitcoin and other crypto assets. Bitcoin's role as a "digital gold" has garnered more favor in the current global macroeconomic environment.
With the changes in the election and macro environment, Bitcoin's performance in the coming months could become a global financial market barometer, injecting a new wave of vitality into the cryptocurrency market, further pushing market expansion and differentiation.
