Bitcoin’s price almost hit $70,000 on Monday due to significant inflows into exchange-traded funds for the digital asset and positive sentiment regarding US regulations. The cryptocurrency saw a 1% increase before settling at $69,005 in London. Other cryptocurrencies like Ether and Solana remained relatively stable during this time.
US spot-Bitcoin ETFs experienced a substantial influx of nearly $2.4 billion in the six days leading up to October 18. This was fueled by speculation that US crypto regulations could become more favorable post the presidential election on November 5. Republican candidate Donald Trump is known for his pro-crypto stance, with Bitcoin being considered a “Trump trade.” On the other hand, Democratic candidate Vice President Kamala Harris has expressed support for a regulatory framework for the crypto industry, which is a departure from the stricter approach taken by the Biden administration.
Market experts, such as David Lawant, the head of research at FalconX, have pointed out that the upcoming elections and the global macroeconomic situation are key factors driving the cryptocurrency market. Lawant highlighted that the Bitcoin options market is showing increased volatility around the election day, indicating traders’ uncertainty during this period.
Bitcoin’s recent surge of nearly 10% over the past week marks its best weekly performance in more than a month. The demand for ETFs played a significant role in pushing the token to a record high of $73,798 in March. Although the rally has subsided since then, with Bitcoin last trading above $70,000 in June, the current market conditions suggest a renewed interest in cryptocurrencies.
Investors are closely monitoring the developments around the US elections and regulatory environment to gauge the future trajectory of Bitcoin and other digital assets. The market remains optimistic about the potential for further price appreciation, driven by increased institutional interest and a more supportive regulatory landscape. As Bitcoin continues to capture mainstream attention, its price movements are likely to be influenced by a combination of market dynamics and external factors.
