Bitcoin Prices Surge Over $71,000 Amid US Election Speculations
Amid speculations around the outcome of next week’s US elections, Bitcoin prices have climbed over the $71,000 mark for the first time since June. The digital currency increased by more than 2%, reaching $71,310 while other cryptocurrencies, such as Ether and Dogecoin, also saw gains of about 4%.
Bitcoin’s surge is being closely watched in relation to the upcoming US elections, with President Donald Trump being a vocal supporter of digital assets. Trump has even vowed to make the US the crypto capital of the planet, while Democratic candidate Vice President Kamala Harris has called for a regulatory framework for digital assets.
With Trump currently leading in prediction markets and polls showing a close race with Harris, volatility is expected to be high around Election Day on November 5th.
The recent rally in Bitcoin is attributed to strong ETF inflows and positive market sentiment ahead of the election. The Iran-Israel conflict has also played a role in driving investors towards global assets. This rally has not only boosted Bitcoin but also other major coins like Ethereum, Solana, BNB, and Dogecoin, which rose over 15% following Elon Musk’s tweet.
Options traders are betting that Bitcoin could reach $80,000 by the end of November, regardless of the election outcome. US spot-Bitcoin ETFs have seen about $3.3 billion in net inflows this month, indicating growing investor interest in the digital currency.
The rise in Bitcoin was also supported by a recent rally in stock markets. Market analysts believe that Bitcoin is pricing in a potential Donald Trump election victory and that it needs to consistently stay above $70,000 to surpass its March record of $73,798.
In a humorous turn of events, Trump has proposed asking Elon Musk to help reduce government spending, a plan jokingly referred to as the Department of Government Efficiency (DOGE), referencing the Dogecoin token that Musk supports.
Despite reduced bets on Federal Reserve interest rate cuts and increased scrutiny on stablecoin Tether, Bitcoin has surged 70% in 2024, showcasing its resilience and growing popularity among investors.
