According to Bloomberg: Bitcoin has surged past the $70,000 mark for the first time since June, driven by significant inflows into spot Bitcoin ETFs and increased market speculation as the US election approaches. The digital asset briefly climbed over 1%, later trading at $69,840 as of Tuesday morning in Singapore, while other tokens like Ethereum also posted moderate gains.
Trump’s Crypto-Friendly Stance Fuels “Trump Trade” Sentiment in Bitcoin’s Rally
Viewed by some as a "Trump trade," Bitcoin’s recent momentum reflects investor confidence in Republican nominee Donald Trump’s pro-crypto stance. Trump has openly embraced digital assets, positioning them as a key pillar in his campaign, and now leads in prediction markets. His tight race with Democratic contender Kamala Harris, who favours a more regulated approach to digital currencies, has further amplified Bitcoin’s appeal among investors. Market analyst Tony Sycamore of IG Australia commented that a sustained push beyond $70,000 could help Bitcoin challenge its March peak of $73,798.
Spot-Bitcoin ETFs in the US Record $3.1 Billion in October Inflows
October saw unprecedented inflows of $3.1 billion into spot Bitcoin ETFs, as traders ramped up bets for Bitcoin to reach $80,000 by November’s end. Elevated implied volatility around the November 5 election has fueled options activity, with traders anticipating a major price swing regardless of the election outcome.
Bitcoin’s 2024 Growth Continues Despite Market Challenges
Bitcoin has climbed 66% in 2024, proving resilient despite reduced Federal Reserve rate cut expectations and increased scrutiny on Tether, a core stablecoin in the crypto market. With investor interest high and the election nearing, Bitcoin remains well-positioned as a top asset to watch for the coming months.
Election 2024’s Impact on the Bitcoin Market
The upcoming 2024 US election is set to be a major catalyst for Bitcoin’s market trajectory. With Donald Trump taking a pro-crypto stance, Bitcoin has seen increased inflows as investors eye potential policy shifts favouring digital assets. Trump’s pledge to establish the US as a crypto capital contrasts sharply with Democratic candidate Kamala Harris’s cautious approach, favouring structured regulation over aggressive crypto expansion.
With the election outcome uncertain, market volatility has spiked, with traders and institutional investors adjusting positions to hedge against potential swings. The so-called “Trump trade” has gained momentum, pushing Bitcoin closer to new highs as sentiment remains bullish. The November election results may bring heightened volatility, but if pro-crypto policies take the forefront, Bitcoin could break its current resistance and push toward an all-time high.
