Bitcoin experienced a significant surge on Tuesday, climbing nearly 5% to reach a price of $71,521.00, its highest level in nearly five months. This increase comes amid rising speculation regarding a potential Republican victory in the upcoming U.S. elections, alongside positive technical indicators that bolstered investor confidence.
As of 01:27 ET (05:27 GMT), Bitcoin moderated its gains, trading at $70,952.50, while the broader cryptocurrency market also saw upward movement in response to Bitcoin’s rally. A report from Coindesk highlighted that major cryptocurrency investors, referred to as “whales,” were active on Binance during Asian trading hours, contributing to the price spike.
The anticipation surrounding the U.S. elections, scheduled for November 5, has intensified interest in Bitcoin. Speculation suggests that former President Donald Trump could defeat Vice President Kamala Harris, with online prediction markets showing a favorable outlook for Trump. Recent polls also indicate that Trump is gaining traction against Harris. His campaign has emphasized crypto-friendly regulations, which many believe could positively impact the cryptocurrency sector in the U.S.
Notably, Harris has also committed to establishing a regulatory framework for cryptocurrencies, suggesting that the industry could thrive regardless of the election outcome.
Technical analysis also played a role in boosting sentiment for Bitcoin, particularly the formation of a “golden cross” between the cryptocurrency’s 50-day and 200-day moving averages. This pattern typically signals potential upward price movements. Following Tuesday’s gains, Bitcoin is now eyeing its previous record high of $73,750 set in March.
Despite trading in a largely rangebound pattern since March’s peaks, recent gains have positioned Bitcoin significantly above the $50,000 to $65,000 range that dominated much of this year.
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