Bitcoin’s price surpassed US$71,000, or R$404,000, for the first time since June this year, driven by inflows into dedicated exchange-traded funds, as well as speculation about the outcome of the election in the United States.
The largest digital asset rose as much as 2.7% before paring some of the movement. Smaller tokens such as Ether and Dogecoin also rose.
Bitcoin is seen by some as part of the so-called ‘Trump trade’, as Republican candidate Donald Trump championed digital assets during the campaign. Trump is ahead in betting markets, while polls show a tight race against the Democratic candidate, Vice President Kamala Harris.
The token continues to “price in a Donald Trump election victory,” Tony Sycamore, market analyst at IG Australia Pty, wrote in a note. Bitcoin needs to sustain above $70,000 to build confidence that it can recover beyond March’s record high of $73,798, he added.
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Trump promised to make the United States the crypto capital of the planet. Harris took a more measured approach, promising to support a regulatory framework for the industry. Their positions contrast with a crackdown on the sector under President Joe Biden.
Trump also said he would ask billionaire Elon Musk — a major donor to his campaign — to lead an effort to cut government spending. Musk’s affiliation with the Trump campaign helped boost sentiment among traders, according to Arisa Toyosaki, co-founder of cryptocurrency derivatives services provider Cega.
Options traders have increased bets that Bitcoin will peak at $80,000 by the end of November regardless of who wins the election. Implied volatility around Election Day on November 5 is high. Spot-Bitcoin ETFs in the United States have attracted about $3.6 billion in net inflows so far this month. The original cryptocurrency jumped 69% in 2024.
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