Bitcoin Price Benefiting From Hashrate, Inflation, and a Crypto-Promoting President

The Bitcoin (BTC) price has decreased by 4.1% from October 21 to October 22 after encountering resistance at $69,500. This adjustment has erased the previous week's gains, making traders doubtful whether the $67,000 level can be recovered and what factors could support a price reversal. The S&P 500 has declined from its October 18 peak, which may have made Bitcoin investors more cautious. However, the key factors behind the stock market's decline largely benefit alternative assets. For instance, gold reached a record high on October 22. Hedge fund manager Paul Tudor Jones stated on CNBC on October 22 that the U.S. government will continue to pursue an inflationary path "regardless of who sits in the White House." In this scenario, Tudor Jones recommends gold and Bitcoin, emphasizing that most investors are "significantly underinvested" in commodities. Tudor Jones predicts that the U.S. fiscal deficit will exceed current budget forecasts, implying that long-term Treasury yields may rise as "the U.S. will eventually try to inflate its way out of this." In this scenario, a stock market crash is not an immediate threat, but the U.S. dollar may face significant devaluation. Despite this not being the first time the Tudor Investment founder has praised the value of Bitcoin, the reaffirmation of his views as BTC trades near $69,000 sends a notable signal. The sharp rise in the U.S. 10-year bond yield reflects doubts about the Federal Reserve's ability to achieve a "soft landing." Even in the context of increasing macroeconomic instability, the foundations for Bitcoin's sustained growth remain intact. For example, increasing demand for gold, despite tech companies reporting record financial results, highlights a lack of confidence in the stock market. Gold, considered a hedge, shares this core value with Bitcoin. While the outcome of the U.S. presidential election cannot be predicted, Kristin Smith, CEO of the Blockchain Association, believes the upcoming U.S. Congress will be the most crypto-friendly ever, citing "many first-time candidates running on Crypto platforms." Additionally, the number of lawmakers and policymakers open to discussing digital assets appears to be increasing. Strong demand for Bitcoin exchange-traded funds (ETFs) further reinforces the ability of BTC to recover the $67,000 level. Since October 11, these instruments have seen net inflows of $2.68 million, increasing assets under management in ETFs to $51.7 million, according to data from Farside Investors and Coinglass. Estimates of the Bitcoin network's increasing hashrate, a metric measuring the total processing power used by the network's validators, suggest that miners remain optimistic in the medium and long term. A higher hashrate indicates significant investment in ASIC mining equipment, an activity that typically requires 18 months or more to become profitable. With reduced short-term selling pressure from miners, Bitcoin can easily regain its upward momentum and establish $67,000 as a support level.