Bitcoin nearly reached $70,000 on Monday due to a surge in inflows into exchange-traded funds for the largest digital asset, along with optimism surrounding the outlook for US regulations.
The cryptocurrency saw a 1% increase before leveling off at $68,720 as of 11 a.m. in Singapore. Other smaller tokens like Ether and Solana traded within a narrow range.
US spot-Bitcoin ETFs attracted almost $2.4 billion in net inflows over the six days leading up to October 18, according to data compiled by Bloomberg. This was partly driven by speculation that US crypto regulations will become more favorable after the presidential election on November 5.
Republican candidate Donald Trump is known for being pro-crypto, to the extent that Bitcoin is considered a “Trump trade.” On the other hand, Democratic candidate Vice President Kamala Harris has pledged to establish a regulatory framework for the industry. This is in contrast to the crackdown on the sector during the Biden administration.
David Lawant, the head of research at crypto prime broker FalconX, believes that the two main market drivers are the upcoming elections and the global macroeconomic environment. He noted that the Bitcoin options market indicates a high level of implied volatility leading up to the election day.
Bitcoin saw a nearly 10% increase in the previous seven days, marking its best weekly performance in over a month. The demand for ETFs helped Bitcoin reach a record high of $73,798 in March. However, the rally subsided, and Bitcoin last traded above $70,000 in June.
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