Bitcoin approached the $70,000 mark on Monday, buoyed by significant inflows into exchange-traded funds (ETFs) linked to the leading cryptocurrency and growing optimism regarding the future of U.S. regulations.
As of 7:20 a.m. London time, Bitcoin was trading at $69,005 after rising 1% but subsequently paring some of its gains. Other cryptocurrencies, including second-ranked Ether and the top-10 coin Solana, remained relatively stable within narrow price ranges.
According to data compiled by Bloomberg, U.S. spot Bitcoin ETFs attracted nearly $2.4 billion in net inflows over the six days leading up to October 18. This surge is fueled by expectations that regulatory conditions for cryptocurrency may improve following the upcoming presidential election on November 5.
Republican candidate Donald Trump has positioned himself as a strong supporter of cryptocurrency, making Bitcoin a potential “Trump trade.” In contrast, Democratic candidate Vice President Kamala Harris has pledged to promote a regulatory framework for the crypto industry, which differs markedly from the Biden administration’s more stringent stance.
David Lawant, head of research at crypto prime broker FalconX, emphasized that the upcoming elections and the broader global macroeconomic landscape are critical factors for market trends. He noted in a recent analysis that the Bitcoin options market reflects a significant concentration of “forward implied volatility” around election day, with a subdued outlook leading up to and following it.
In the week ending Sunday, Bitcoin recorded a nearly 10% increase, marking its strongest weekly performance in over a month. Demand for ETFs has historically contributed to Bitcoin’s price surges, as seen when it reached a record high of $73,798 in March. However, the cryptocurrency has not surpassed $70,000 since June.
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