Bitcoin surged close to $70,000 on Monday, fueled by a wave of inflows into exchange-traded funds (ETFs) linked to the cryptocurrency and growing optimism about future US regulations.
The digital asset rose 1% before trimming some gains to trade at $69,005 as of 7:20 a.m. in London. Other smaller cryptocurrencies, such as Ether, the second-largest token, and Solana, a top-10 coin, fluctuated within narrow price ranges.
US spot-Bitcoin ETFs attracted nearly $2.4 billion in net inflows over a six-day period ending October 18, according to data compiled by Bloomberg. The surge in demand comes amid expectations that US cryptocurrency regulations could become more favorable following the November 5 presidential election.
Republican candidate Donald Trump is viewed as a strong pro-crypto figure, with Bitcoin often referred to as a “Trump trade.” Democratic contender Vice President Kamala Harris has also expressed support for developing a regulatory framework for the crypto industry, which contrasts with the stricter stance taken by the Biden administration.
David Lawant, head of research at crypto prime broker FalconX, highlighted that the two major trends influencing the market are the upcoming elections and the broader global macroeconomic landscape. Bitcoin’s options market shows that “forward implied volatility is heavily clustered around election day,” with a more subdued outlook in the weeks before and after, according to Lawant.
Bitcoin posted nearly a 10% gain in the week ending Sunday, marking its best weekly performance in over a month. The increased ETF demand helped push the cryptocurrency to a record high of $73,798 in March. However, the rally has since cooled, with Bitcoin last trading above $70,000 in June.
