Bitcoin is getting ready for a potential upswing as we approach the end of the year. Analysts are seeing several developments that could give the market a much-needed boost.

After a 4% drop on Tuesday due to Iran's missile strike on Israel, Bitcoin bounced back from two-week lows. It climbed above $61,500 after dipping to $60,300. The decline followed Iran launching over 180 ballistic missiles at Israel in response to Israeli strikes on Hezbollah positions in Lebanon. This marked the first use of Iran's hypersonic Fattah missiles, according to state media.

Meanwhile, major U.S. stock indices also took a hit. The Nasdaq Composite fell by 1.53%, the S&P 500 dropped 0.93%, and the Dow Jones Industrial Average was down 0.41%.

Even with these tensions, four key factors stand out, according to K33 Research analysts Vetle Lunde and David Zimmerman. These factors include China's aggressive stimulus measures, shifting U.S. economic data, the upcoming presidential election, and a liquidity boost from FTX's bankruptcy payouts.

China's recent stimulus measures are expected to positively impact global liquidity. Last month, the People's Bank of China cut interest rates and introduced a $142 billion stimulus package. These actions aim to prevent a recession and encourage growth, creating a better environment for speculative assets like Bitcoin.

The upcoming U.S. employment data, set to be released on Friday, is also likely to influence market sentiment. Bitcoin has been closely correlated with U.S. equities, and employment figures could affect interest rate expectations. A steady increase in jobs might give Bitcoin an extra lift as investors reassess the economic landscape. Analysts expect around 150,000 jobs were added in September, up from 142,000 the previous month.

The U.S. presidential election is another significant factor. Candidates Vice President Kamala Harris and former President Donald Trump are vying for the presidency, with the election scheduled for November 5. Analysts believe a Trump victory could be positive for Bitcoin, given his more favorable stance on cryptocurrency. On the other hand, a win for Harris might lead to a short-term negative reaction due to her expected regulatory approach to digital assets. Samir Kerbage, chief investment officer at Hashdex, noted that uncertainty around the elections could weigh on the market, especially for the emerging crypto industry. However, regardless of who wins, the crypto space might enter a more favorable policy environment, which could benefit those seeking clearer regulations.

Finally, anticipated payouts from FTX's bankruptcy could give Bitcoin a boost. Creditors are expected to inject about $2.5 billion into the crypto market in late Q4 or early Q1. A reorganization plan for bankrupt crypto exchange FTX has gained support from 94% of creditors from its offshore platform, FTX.com. This plan aims to return 118% of claims in cash to most creditors, totaling around $6.83 billion. With creditor approval secured, the plan will move to bankruptcy court for confirmation, with a hearing set for October 7.

This $6.83 billion payout is part of a larger distribution. In May, FTX's bankruptcy estate announced that creditors and customers could receive between $14.5 billion and $16.3 billion in total compensation across all claims from FTX's former platforms. The liquidation of these assets is likely to lead to significant repurchases of crypto, providing a liquidity boost to Bitcoin and other digital assets.

In other news, a recent survey by Consensys and HarrisX found that nearly half of U.S. voters consider cryptocurrency an "important" issue. The survey, which has a 2.4% margin of error, revealed that 49% of voters take a candidate's position on crypto into account when deciding who to vote for. The poll included over 1,600 registered voters and showed a notable split in political support within the crypto community.

Bitwise has also filed for an XRP ETF following approvals for Bitcoin and Ethereum ETFs. The application for the XRP fund, which is the seventh-largest cryptocurrency by market cap, has been confirmed as legitimate by Bitwise. This filing comes after the SEC approved various firms' Bitcoin and Ethereum ETFs earlier this year. ETFs are popular investment vehicles that trade on stock exchanges, allowing investors to gain exposure to the underlying assets.

As tensions between Israel and Iran continue to rise, Bitcoin's price fluctuated on Tuesday amid missile strikes on Israel. Earlier, the U.S. had warned of a possible ballistic missile strike from Iran against its ally. Later, the Iranian Mission to the United Nations confirmed that Tehran's response "has been duly carried out." Bitcoin's price fell 3.2% to $61,300 during the missile strikes, marking its lowest price in two weeks, but it has since risen to $62,200.