Bitcoin surpassed $71,000 for the first time since June, driven by strong inflows into dedicated exchange-traded funds (ETFs) and speculation surrounding potential outcomes from next week’s U.S. presidential election. The leading cryptocurrency rose more than 2%, trading at $71,310 as of 10:45 a.m. in Singapore. Other notable cryptocurrencies, including second-ranked Ether and the popular meme-based Dogecoin, also experienced gains of around 4%.
Market analysts view Bitcoin as part of a “Trump trade,” largely due to Republican presidential nominee Donald Trump’s support for digital assets during his campaign. Current prediction markets favor Trump, while polls indicate a tightly contested race against Democratic nominee Vice President Kamala Harris.
Tony Sycamore, a market analyst at IG Australia Pty, noted that Bitcoin is benefiting from a recent rally in stocks and is increasingly pricing in a potential Trump victory. He emphasized the importance of Bitcoin maintaining its position above $70,000 to instill confidence for a rally beyond its record high of $73,798 set in March.
Trump has pledged to position the U.S. as the global hub for cryptocurrency, contrasting with Harris’s more cautious stance, which includes supporting a regulatory framework for the industry. This marks a stark difference from the regulatory crackdowns seen during President Joe Biden’s administration.
Additionally, Trump indicated he would enlist billionaire Elon Musk, a significant contributor to his campaign, to lead efforts aimed at cutting government spending under an initiative dubbed the Department of Government Efficiency (DOGE), a nod to the Dogecoin token that Musk has publicly supported.
Options traders are increasingly optimistic, with many betting that Bitcoin could reach as high as $80,000 by the end of November, regardless of the election outcome. Implied volatility surrounding Election Day on November 5 is elevated, reflecting market uncertainty. Spot-Bitcoin ETFs in the U.S. have seen approximately $3.3 billion in net inflows this month, underscoring growing institutional interest in the cryptocurrency.
Bitcoin’s price has surged 70% in 2024, overcoming reduced expectations for Federal Reserve interest rate cuts and reports of increased scrutiny over Tether, a stablecoin crucial to crypto trading.
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