Bitcoin surged in evening trading on Monday, briefly surpassing key levels amidst increasing speculation of a Republican victory in the upcoming U.S. elections. Positive technical indicators also contributed to its strength.
The cryptocurrency rose by up to 3% to reach a three-month high of $70,203.4, disregarding recent concerns surrounding reports of the U.S. government investigating stablecoin giant .
The surge in Bitcoin was largely fueled by speculation that Donald Trump would defeat Kamala Harris in the upcoming election, scheduled for November 5.
Online prediction markets favored a Trump win, and recent polls showed Trump gaining momentum against Harris.
Trump’s campaign promises of crypto-friendly regulations also contributed to the positive sentiment towards Bitcoin in the U.S.
Additionally, the formation of a golden cross between Bitcoin’s 50-day and 200-day moving averages further boosted investor confidence. A golden cross occurs when a short-term moving average surpasses a longer-term moving average, typically indicating an upward price movement.
If Bitcoin manages to sustainably stay above $70,000, it will be just $4000 away from reaching its record high last seen in March.