Bitcoin's price increased as funds flowed into U.S. Bitcoin spot exchange-traded funds (ETFs), driven by optimism around U.S. cryptocurrency regulation and a bullish sentiment in the market. Bitcoin, the leading cryptocurrency by market capitalization, rose around 1%, nearing the $70,000 mark, its highest since June. Other cryptocurrencies like Ethereum and Solana also saw price increases alongside Bitcoin.
Data shows that U.S. Bitcoin spot ETFs attracted approximately $2.4 billion over six trading days leading up to October 18. The influx is partially due to expectations that U.S. crypto regulation might become more favorable after the November 5 presidential election. Republican candidate Donald Trump, a vocal supporter of cryptocurrency, contrasts with the current Biden administration's restrictive stance, encouraging investments in Bitcoin spot ETFs, which have lower entry costs compared to physical Bitcoin.
David Lauvent from crypto brokerage FalconX highlighted that the U.S. presidential election and global economic conditions are influencing the market. He noted that Bitcoin options markets indicate high implied volatility around the election timeframe, tapering off afterward.
Bitcoin's price increased nearly 10% over seven days, marking its best weekly performance in over a month. Strong demand for Bitcoin spot ETFs previously helped it reach an all-time high of $73,798 in March.
Sean Farrell from Fundstrat Global Advisors attributed part of Bitcoin's rise to growing confidence in Trump's potential return to the White House. If Trump wins, crypto-related regulatory risks might diminish, potentially leading to strategic Bitcoin reserves by the government.
Cryptocurrencies have become a pivotal topic in the approaching 2024 U.S. presidential election. Trump has urged for the U.S. to become a "world Bitcoin superpower," likely appealing to crypto enthusiasts and industry leaders. In contrast, Democratic VP Kamala Harris has only recently joined the pro-crypto camp.
Standard Chartered predicts that Bitcoin could hit a new all-time high by the end of 2024, regardless of the election outcome, and possibly reach $125,000 if Trump wins. Dan Tapiero of 1RoundTable Partners also expressed bullish sentiments, predicting Bitcoin could exceed $100,000, and Ethereum over $5,000 within the next six months, signaling an upcoming crypto bull market.
