Bitcoin (BTC) has experienced a 1.7% increase in value over the past 24 hours, bringing it close to $58,000. This recovery comes after a sharp sell-off last week. The upcoming US presidential debate between Donald Trump and Kamala Harris could potentially impact the cryptocurrency market as their differing policies on cryptocurrencies could influence market sentiment. The ongoing uncertainty surrounding the election could potentially weigh on crypto prices into November. However, if Harris' lead in the polls shrinks, it may bring a small respite and affect market volatility. Analysts at K33 Research suggest that Bitcoin and the broader market may be on the verge of a significant rally, as the 30-day average funding rate for perpetual swaps has turned negative, which has historically coincided with a market bottom. When funding rates have been negative in the past, Bitcoin has returned an average of 79% over the following 90 days. The combination of negative funding rates and an influx of short positions suggests that the market is increasingly vulnerable to a short squeeze, potentially pushing prices higher. Therefore, K33's analysts believe that there is a compelling case for aggressive exposure to BTC in the coming months.



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