Important points
- Bitcoin topped $73,000 on Tuesday and is now within striking distance of its all-time high set in March.
- Bitcoin's rally also pushed MicroStrategy stock to a 52-week high.
- Analysts say trading activity in Bitcoin-related investments has increased ahead of the U.S. election.
Bitcoin (BTCUSD) traded around $73,000 on Tuesday for the first time since March, gaining momentum ahead of the U.S. presidential election as investors poured billions into spot Bitcoin exchange-traded funds.
This momentum has pushed the most-traded cryptocurrency close to its all-time high of $73,798, set earlier this year. Also on Tuesday, shares of MicroStrategy (MSTR), which had over 252,000 Bitcoins on its books as of September 19th, hit a 52-week high of $267.89.
Shares of other Bitcoin-related companies also rose, including Coinbase Global (COIN) and Marathon Digital's parent company Mara Holdings (MARA). MicroStrategy and Coinbase will report earnings tomorrow.
Bitcoin trading activity picks up ahead of election
Bitcoin trading activity is increasing as Election Day approaches. Both Republican candidates, former President Donald Trump and Democratic Vice President Kamala Harris, have sought to engage with the crypto community. Trump, who was previously more skeptical, began embracing cryptocurrencies earlier this year, while Harris has been discussing her approach in recent months.
Since Oct. 11, the Spot Bitcoin ETF has had nearly $4 billion in net inflows, with just one day of outflows, according to data from Pharcyde Investors. The Spot Bitcoin ETF holds Bitcoin, and increased demand for the product helped push Bitcoin to an all-time high earlier this year.
Trading activity in Bitcoin derivative products such as futures and options has also increased. According to Coinbase Research, CME Bitcoin futures open interest (the total number of outstanding derivatives contracts is considered an indicator of investor interest) increased significantly in October compared to September.
According to Kaiko Research, there has been a surge in trading in Bitcoin options contracts traded on cryptocurrency exchange Deribit, which expire on November 8, the Friday after the election. “The majority of trades were concentrated in the $65,000 to $80,000 range, suggesting that traders see prices trading near all-time highs post-election,” Kaiko said. said.
