Bitcoin (BTCUSD) reached approximately $73,000 on Tuesday, marking its first significant trading surge since March. This rise comes as investors funnel billions into spot bitcoin exchange-traded funds (ETFs) ahead of the U.S. presidential election.
The current momentum brings Bitcoin closer to its all-time high of $73,798, achieved earlier this year. This spike also benefited shares of MicroStrategy (MSTR), which holds over 252,000 bitcoins, driving its stock price to a 52-week high of $267.89. Other bitcoin-related companies, such as Coinbase Global (COIN) and Marathon Digital Holdings (MARA), also saw their shares increase. Both MicroStrategy and Coinbase are set to report earnings tomorrow.
As Election Day approaches, trading activity for Bitcoin has intensified. Former President Donald Trump, the Republican candidate, and Democratic Vice President Kamala Harris have both made strides to connect with the cryptocurrency community. Trump has shifted from skepticism to embracing crypto this year, while Harris has articulated her stance on the matter.
Since October 11, spot bitcoin ETFs have garnered nearly $4 billion in net inflows, with only one day showing outflows, according to Farside Investors. Spot bitcoin ETFs, which hold actual bitcoins, have played a significant role in driving Bitcoin’s prices to historic highs earlier this year.
Additionally, trading in bitcoin derivatives, including futures and options, has also surged. According to Coinbase Research, the open interest in CME bitcoin futures—an indicator of investor interest—rose significantly in October compared to September.
Trading activity in bitcoin options contracts on the crypto exchange Deribit, set to expire on November 8, has seen a notable increase, as reported by Kaiko Research. Most trading activity is concentrated in the $65,000 to $80,000 range, indicating that traders anticipate prices may reach record highs following the election.
Related Topics:
