Following a period of uncertainty in what was dubbed “Uptober” due to Bitcoin’s drop below $60,000, the leading cryptocurrency has staged an impressive recovery. Recently, on October 14th, BTC surged to $66,500, marking its highest value since July.
This surge in Bitcoin’s price triggered a significant rally for publicly traded companies with ties to the crypto industry in the United States.
Among the top performers was CleanSpark (CLSK), a Bitcoin mining firm, which recorded a substantial increase of 12.72% according to Google Finance. Coinbase (COIN) followed closely behind with an 11.32% rise.
Additionally, LM Funding America (LMFA) saw an uptick of 10.94%, TeraWulf (WULF) rose by 6.65%, and Marathon Digital Holdings (MARA) climbed by 5.60%.
Currently, Bitcoin is trading at $65,657, reflecting a 9.04% increase over the past month and a remarkable 144% surge in the last year.
Factors Driving Bitcoin’s Surge
The recent rally in crypto stocks aligns with increased investor interest in Bitcoin, partially driven by expectations surrounding the upcoming U.S. presidential elections.
Both the Republican and Democratic parties have shown support for cryptocurrency, nurturing optimism among investors. This backing suggests potential upside for Bitcoin irrespective of the election outcome between Donald Trump and Vice President Kamala Harris.
Trump, who previously had reservations about crypto, now portrays himself as a pro-crypto figure and has even initiated his crypto-related initiative, according to reports from CryptoCrypto.
Conversely, Harris is progressively positioning herself as a proponent of cryptocurrencies. Her recent focus has been on leveraging digital assets to empower economic growth.
Debates Surrounding Bitcoin’s Value
Despite gaining broader acceptance and endorsement, Bitcoin faces skepticism from traditional financial institutions and leaders.
Neel Kashkari, President of the Minneapolis Federal Reserve Bank, remarked on October 14th that Bitcoin, despite its 12-year existence, remains without value.
Kashkari emphasized that cryptocurrencies, despite their longevity, have failed to establish themselves as functional currencies.
Nevertheless, Bitcoin’s impressive market cap of $1.3 trillion and the presence of 1.3 billion addresses, as reported by Glassnode, underscore its widespread adoption, market confidence, and recognition as a valuable digital asset, countering criticisms.