Bitcoin prices continue to show upward momentum during Monday morning European trading hours as the 2024 US presidential election approaches. In fact, BTC briefly hit a high of $69,227 earlier today.
The apex cryptocurrency is currently trading at $68,270, down 0.2% in the past 24 hours, according to CoinGecko data. Ethereum (ETH), on the other hand, has also seen positive activity, rising 2.5% during the same period to trade at $2,713.
Experts attribute the bullish sentiment in the market to the upcoming election, with Bitcoin approaching the crucial $70,000 level.
talk to decryptionAvinash Shekhar, co-founder and CEO of Pi42, said that multiple factors, including Kamala Harris' support for cryptocurrencies and President Trump's high probability of re-election, have pushed Bitcoin past critical resistance. We believe it is approaching $70,000.
“Bitcoin is currently trading at $68,700 on the back of Kamala Harris’ support for cryptocurrencies, Trump’s 60% reelection chances, low interest rates, and receding fears of World War III. ” said Shekhar.
He added that bulls are targeting $72,000 in the short term, while bears are trying to prevent a fall below $66,500.
Interestingly, Bitcoin open interest (OI) has soared to new highs, indicating increased participation and interest from crypto derivatives traders. According to CoinGlass data, total OI is $40.57 billion, with 593,000 BTC locked in open contracts, reflecting a high level of market activity.
The renewed enthusiasm among traders comes as the US presidential election is scheduled to take place on November 5th, with former President Donald Trump currently leading with odds of 61.4% on betting platform Polymarket. Vice President Kamala Harris has 38.6%. As the Trump administration has shown a favorable attitude toward cryptocurrencies, market participants are viewing President Trump's chances of re-election positively.
In a report shared with decryptionBernstein said the rising odds for Trump are being interpreted as bullish for Bitcoin, with market participants increasingly leaning towards a “risk-on” approach.
“Bitcoin is looking to break above the $70,000 resistance level (again) and, like other risk-on markets, we are interpreting the rising odds for a Trump presidency as bullish for crypto.” analysts said.
Additionally, Kamala Harris' clear policy statements in support of cryptocurrencies also contributed to the overall bullish mood, alleviating concerns about a negative regulatory environment regardless of the election outcome.
Retail sentiment has also shifted to a “risk-on” attitude. At trading platform Robinhood (HOOD), the number of active traders increased by 10% quarter-over-quarter, and crypto trading revenue increased by 160% year-over-year. This is consistent with a positive outlook in the broader market, which expects the Federal Reserve to cut rates further, making risky assets like Bitcoin more attractive.
Edited by Stacey Elliott.
daily report meeting Newsletter
Start each day with the current top news stories, plus original features, podcasts, videos, and more.
