Bitcoin neared the $70,000 mark on Monday, buoyed by a significant influx of capital into exchange-traded funds (ETFs) focused on the leading digital asset and growing optimism regarding the regulatory landscape in the U.S. The cryptocurrency initially rose by 1% before slightly retracting, trading at $69,005 as of 7:20 a.m. in London. Other cryptocurrencies, including second-ranked Ether and the top-10 coin Solana, remained relatively stable within narrow price ranges.
According to data compiled by Bloomberg, U.S. spot Bitcoin ETFs attracted nearly $2.4 billion in net inflows during the six days leading up to October 18. This surge in investment is partly fueled by expectations that U.S. cryptocurrency regulations may become more favorable following the presidential election on November 5.
Republican candidate Donald Trump has positioned himself as a strong advocate for cryptocurrency, with Bitcoin often seen as a “Trump trade.” Conversely, Democratic Vice President Kamala Harris has committed to supporting a regulatory framework for the crypto industry, marking a departure from the stricter measures implemented during the Biden administration.
David Lawant, head of research at crypto prime broker FalconX, highlighted that the key influences on the market include the upcoming elections and the broader global macroeconomic climate. He noted that the Bitcoin options market shows “forward implied volatility is heavily clustered around election day,” indicating heightened market activity around that time, while remaining subdued in the lead-up to and shortly after the elections.
In the week leading up to Sunday, Bitcoin experienced a nearly 10% increase, marking its best weekly performance in over a month. Demand for ETFs previously helped propel Bitcoin to a record high of $73,798 in March. However, the rally has since cooled, with Bitcoin last trading above the $70,000 threshold in June.
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