WASHINGTON: Bitcoin rose past US$70,000 for the first time since June, bolstered by inflows into dedicated exchange-traded funds (ETFs) as well as speculation about potential outcomes from next week’s US election.
The largest digital asset climbed about 1% before paring the advance to trade at US$69,840 as of 7:23am yesterday in Singapore.
Smaller tokens including second-ranked ether also posted modest gains.
Bitcoin is viewed by some as a so-called Trump trade because Republican presidential nominee Donald Trump embraced digital assets during campaigning.
Trump is ahead in prediction markets, while polls show a neck-and-neck race against Democratic candidate vice-president Kamala Harris.
The token drew succour from an overnight rally in stocks and is continuing to “price in a Donald Trump election victory,” Tony Sycamore, a market analyst at IG Australia Pty, wrote in a note.
Bitcoin needs a sustained break past US$70,000 to boost confidence it can rally past March’s record of US$73,798, he added.
Trump has vowed to make the United States the crypto capital of the planet.
Harris has adopted a more measured approach, pledging to support a regulatory framework for the industry. Their positions contrast with a crackdown on the sector under President Joe Biden.
Options traders have increased bets that bitcoin will reach a peak of US$80,000 by the end of November regardless of who wins the election.
Implied volatility around Election Day on Nov 5 is elevated.
Spot-bitcoin ETFs in the United States have attracted about US$3.1bil in net inflows so far this month. — Bloomberg
