Bitcoin Price Nears $70,000 Amid ETF Inflows and Election Optimism
Bitcoin enthusiasts rejoiced as the price of the popular cryptocurrency surged close to $70,000 on Monday, driven by a flurry of inflows into exchange-traded funds and positivity surrounding US regulations. This uptick in Bitcoin’s value saw it rise by 1%, reaching $69,005 before dipping slightly. Other digital assets like Ether and Solana also experienced minor fluctuations within a narrow range.
US spot-Bitcoin ETFs saw an influx of almost $2.4 billion in net inflows over the past six days, according to data compiled by Bloomberg. Investors are optimistic that US regulations on cryptocurrencies will become more favorable post the Nov. 5 presidential election. With Republican candidate Donald Trump being openly supportive of crypto assets, Bitcoin is seen as a promising investment under a potential Trump administration. On the other hand, Democratic Vice President Kamala Harris has pledged to establish a regulatory framework for the crypto industry, marking a departure from the stricter stance taken by the Biden administration.
David Lawant, the head of research at crypto prime broker FalconX, emphasized the significance of both the upcoming elections and the global macroeconomic environment for the cryptocurrency market. The Bitcoin options market suggests a heightened level of implied volatility surrounding the election day, indicating potential price movements during this period.
Bitcoin’s recent uptrend is further fueled by ETF demand, with the cryptocurrency posting its best weekly performance in over a month by climbing nearly 10% in the past seven days. The previous record high for Bitcoin was set at $73,798 in March, thanks to strong ETF interest. Despite a temporary dip in its value afterward, Bitcoin remains a lucrative investment opportunity for many.
As the digital asset landscape continues to evolve, investors are closely monitoring regulatory developments and macroeconomic trends to make informed decisions about their cryptocurrency holdings. Stay updated with Extreme Investor Network for the latest insights and analysis on Bitcoin and other emerging assets in the financial market.