He noted improvements in the market structure, which could establish a solid foundation for a bullish trajectory.
The rising supply of stablecoins indicates heightened liquidity, which can enhance trading activity—often a precursor to significant price rallies.
Meanwhile, Elevated leverage levels in futures trading reflect a more speculative environment among traders, potentially driving prices upward. According to Coinglass data, open interest has surged to levels unseen since early August, topping $17.6 billion.
Additionally, the release of $16 billion from FTX creditors between December 2024 and March 2025 is expected to bring more capital into the market. Thielen estimates that between $5 billion and $8 billion could re-enter the crypto space, further propelling Bitcoin’s ascent.
Past Barriers to Bitcoin’s Price Flip to Catalysts
As we enter Q4, past suppressants to the Bitcoin price are being lifted, contributing to a more favorable environment ripe for potential growth
One of the main catalysts for Bitcoin’s recent rally is the Federal Reserve’s decision to cut interest rates by 50 basis points. This move has shifted toward “risk-on” assets as investors seek opportunities amid a weakened U.S. dollar, rising inflation, and ongoing fiscal uncertainty.
The stability of BTC miners post-halving has also contributed to the positive sentiment. Bitcoin halving events, which reduce the block reward for miners, often lead to a period of instability in the mining sector.
According to Blockchain.com data, following the April 2024 halving, the network’s hash rate has returned to pre-halving levels, signaling that the market has absorbed the impact.
Additionally, major Bitcoin sell-offs appear to be over, providing a clear runway for further price appreciation. The German government and the Mt. Gox trustees have completed their sales, with $11 billion worth of Bitcoin priced in without any significant price disruptions.
Kamala Harris Promises to Support Crypto
Political developments have significantly bolstered sentiment in the cryptocurrency market, with the upcoming US election emerging as a major catalyst for optimism.
Vice President Kamala Harris’s first public endorsement of digital assets has heightened this bullish outlook. Speaking at a Sunday fundraiser at Cipriani Wall Street in Manhattan, she affirmed a commitment to supporting crypto and AI to foster innovation.
We will partner together to invest in America’s competitiveness, to invest in America’s future. We will encourage innovative technologies like AI and digital assets, while protecting our consumers and investors.
This endorsement, along with Donald Trump’s open support for cryptocurrency, highlights a growing bipartisan backing that is expected to drive significant momentum in the cryptocurrency space as the push for regulatory clarity intensifies.