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For the first time since June, Bitcoin topped $70,000 thanks to speculation over the possible results of next week's US election and inflows into specialized exchange-traded funds. As of 7:23 AM on Tuesday in Singapore, the most prominent digital asset had increased by around 1% before reversing the gain to trade at $69,840.
Ahead of next week's US presidential election, optimism is growing. The bitcoin price has been limited to a narrow band of $55,000 to $70,000. With markets reaching new highs this month, Election Day on November 5, and another Federal Reserve rate policy announcement on November 7, it might be ready for a breakout.
Courting the Crypto Industry
This year, Donald Trump, the Republican nominee and former president, has been courting the cryptocurrency industry and positioned himself as the pro-crypto candidate. The sector is divided on how Democratic candidates and Vice President Kamala Harris's possible presidency may impact cryptocurrency companies, as she has been less vocal.
As the election draws near, investors are keeping a close eye on the outcome, which is generally considered a significant trigger for the bitcoin price. Bitcoin jumped toward $70,000 last week but could not reach that level.
Investors for Earnings
Investors are anticipating Coin Base and Micro Strategy's Wednesday earnings releases. Micro Strategy, a high-beta strategy that believes in the price of Bitcoin, closed at its highest level on Monday, March 15, 2000. Micro Strategy hopes to continue its winning run, which has been ongoing for seven weeks and is the longest since an 11-week run that ended in late October 2010.
Crypto Stocks Jump As Bitcoin Climbs Toward $70,000
After briefly approaching the $69,000 mark a week ago, stocks linked to the bitcoin price surged on Monday as the flagship cryptocurrency climbed above that mark. Coin base, a cryptocurrency exchange operator, increased by 4%.
Micro Strategy, a proxy for the price of bitcoin, increased by over 5%. On Wednesday, both businesses are expected to release their quarterly financial results. Riot Platforms and Mara Holdings, two bitcoin miners, had 5% increases.
Since reaching a record high of $73,000 in March, Bitcoin has been attempting to recover the $70,000 mark. It has remained under $70,000 since June despite brief journeys above the mark during another attempt this year. Some say things might soon change as the US presidential election approaches.
Spot-Bitcoin ETFs
Regardless of the election's outcome, options traders have boosted their projections that Bitcoin will peak at US$80,000 by the end of November. There is a high implied volatility on November 5, Election Day. So far this month, net inflows into US spot-bitcoin exchange-traded funds (ETFs) have totaled about US$3.3 billion.
Bitcoin increased by 70% in 2024 and has recently withstood a decline in bets on interest rate reduction by the Federal Reserve, as well as a report of increased US monitoring of Tether. This stable coin serves as a critical component in cryptocurrency trading.
