Bitcoin price will benefit from a rising hash rate, US inflation concerns and a cryptocurrency-friendly presidential system.

Bitcoin (BTC) fell 4.1% between October 21 and October 22 after encountering resistance at $69,500. The correction wiped out last week’s gains and left traders questioning whether the $67,000 level can be recovered and what factors could support a price reversal.

The decline in the S&P 500 since its all-time high on October 18 is likely to make Bitcoin investors more cautious. However, most of the major drivers of stock market declines favor alternative assets. For example, gold hit an all-time high on October 22nd.

Bitcoin will profit regardless of the outcome of the US presidential election

Billionaire hedge fund manager Paul Tudor Jones told CNBC on October 22 that the U.S. government will continue to follow an inflationary path “regardless of who’s in the White House.” In this scenario, Tudor Jones recommends gold and Bitcoin, emphasizing that most investors are “ridiculously” underexposed to the commodities.

Tudor Jones expects the U.S. public deficit to exceed current budget projections, suggesting long-term Treasury yields will rise as “the U.S. will ultimately attempt to inflate its way out.” In this scenario, a stock market crash would not be imminent, but the U.S. dollar could face significant devaluation.

This isn’t the first time the Tudor Investment founder has praised Bitcoin’s value, but reaffirming his position while BTC is trading near $69,000 sends a notable signal. The sharp rise in US 10-year Treasury yields reflects doubts about the Fed’s ability to achieve a ‘soft landing’.

Even amidst increasing macroeconomic uncertainty, the fundamentals for a sustainable Bitcoin rally remain intact. For example, rising demand for gold despite technology companies reporting record profits highlights a lack of confidence in the stock market. Traditionally viewed as a hedge, gold shares this core value proposition with Bitcoin.

While it is impossible to predict the outcome of the U.S. presidential election, Kristin Smith, CEO of the Blockchain Association, believes the next U.S. Congress will be the most cryptocurrency-friendly Congress ever, with “many first-time candidates who will have a stance on cryptocurrency.” “mentioned. .” It also appears that the number of lawmakers and policymakers willing to discuss digital assets is growing.

Bitcoin benefits from increased hash rate and investor interest in alternative assets.

Strong demand for Bitcoin exchange-traded funds (ETFs) further supports the possibility of BTC recovering to the $67,000 level. Since Oct. 11, these products have received net inflows of $2.68 billion, bringing assets under management in ETFs to $51.7 billion, according to data from Farside Investors and Coinglass.

relevant: The SEC has designated cryptocurrencies as a priority review target in 2025.

The ever-increasing estimated Bitcoin hash rate, which measures the total processing capacity utilized by network validators, is a sign that miners remain optimistic in the medium to long term.

Higher hash rates mean significant investments in ASIC mining rigs, a task that typically requires 18 months or more to achieve profitability. With short-term selling pressure from miners waning, it becomes easier for Bitcoin to regain bullish momentum and establish $67,000 as a support level.