Bitcoin prices rose above $71,000 on Tuesday for the first time since June, boosted by inflows into dedicated exchange-traded funds (ETFs) and speculation about next week's U.S. presidential election.
Bitcoin, the largest digital asset, rose 5% to $71,020. Bitcoin prices hit an all-time high of $73,750 in March and are up 70% in 2024. Other cryptocurrencies also rose, with No. 2 Ethereum up 5.5%, Dogecoin up 15%, Solana up 4%, and BNB up 3.3%. According to data from Coinmarketcap.
The rise in Bitcoin prices comes as Republican presidential candidate Donald Trump actively embraced the digital asset during his campaign, leading traders to view the cryptocurrency as a so-called Trump trade.
According to Bloomberg, Trump has the lead in prediction markets, but polls show him in a close race with Democratic nominee Vice President Kamala Harris.
Cryptocurrency prices are rising ahead of the 2024 US presidential election amid optimism that regulations on cryptocurrencies could be eased following the election results.
While Donald Trump has openly supported cryptocurrencies and vowed to make the United States the crypto capital of the planet, Democratic opponent Kamala Harris has taken a more cautious approach and It promised to establish a clear regulatory framework for the industry.
President Trump said he would approach billionaire Elon Musk, a major donor to his campaign, to lead an effort focused on cutting government spending. The effort is unofficially named the Department of Government Efficiency (DOGE), after the Dogecoin token, which Musk has actively supported, Bloomberg reports.
Options traders are increasingly betting that Bitcoin will reach a high of $80,000 by the end of November, no matter who wins the election, Bloomberg reports. Implied volatility around Election Day on November 5th is rising.
Bitcoin ETF inflow
Bitcoin prices are rising due to large inflows into Bitcoin exchange-traded funds (ETFs). According to a report by Bloomberg, the US Spot Bitcoin ETF attracted about $3.3 billion in net inflows this month.
This surge in demand is partially driven by expectations that US cryptocurrency regulation will be more favorable following the November 5 election. Rising interest in ETFs pushed Bitcoin to an all-time high in March of this year.
(Information provided by Bloomberg)
