Bitcoin Nears $70,000 Ahead of US Election: Market Bets on a "Trump Trade"

Bitcoin Nears $70,000 Ahead of US Election: Market Bets on a "Trump Trade"Bitcoin prices surged back towards the $70,000 mark on Monday as the US election draws closer, sparking market chatter. The election outcome is widely seen as a key catalyst for Bitcoin's price movement, and investor sentiment towards the cryptocurrency is strengthening

Bitcoin Nears $70,000 Ahead of US Election: Market Bets on a "Trump Trade"

Bitcoin prices surged back towards the $70,000 mark on Monday as the US election draws closer, sparking market chatter. The election outcome is widely seen as a key catalyst for Bitcoin's price movement, and investor sentiment towards the cryptocurrency is strengthening. According to Coindesk data, Bitcoin is currently up 3.25% at $69,910.43, having reached a high of $70,204.81 in the past 24 hours.

The last time Bitcoin touched $70,000 was in June this year. Last week, Bitcoin spiked to near $70,000 but ultimately failed to break through. This year, the cryptocurrency hit an all-time high of $73,797.68 in March.

Meanwhile, data indicates that US Bitcoin spot ETFs have attracted approximately $3.1 billion in net inflows so far this month. With the US election just a week away, investor optimism towards cryptocurrencies is on the rise. For months, Bitcoin prices have been confined to a range between $55,000 and $70,000. However, with US stocks hitting new highs this month, the November 5th election, and the November 7th Federal Reserve interest rate decision looming, Bitcoin prices are poised for a breakout.

Bitcoin is being viewed by some as a so-called "Trump trade." Republican candidate and former President Donald Trump has courted the cryptocurrency industry this year, positioning himself as a pro-crypto candidate and pledging to make the US the global crypto capital. Democratic candidate and Vice President Kamala Harris has been more cautious on crypto, promising to support a regulatory framework for cryptocurrencies. There is a divided opinion on how her presidency would impact crypto. Regardless, both Trump and Harris' stance mark a stark contrast to President Biden's administration's crackdown on the cryptocurrency industry.

While polls show Trump and Harris neck-and-neck, major betting websites' odds are leaning in favor of Trump winning next month. As of now, Polymarket shows a 66.3% chance of Trump winning the US election, compared to a 33.8% chance for Harris.

Tony Sycamore, market analyst at IGAustraliaPty, wrote in a report that Bitcoin has received a boost from the overnight stock market rebound and continues to "price in a Trump win." He added that Bitcoin needs to sustainably break through $70,000 to bolster confidence in its ability to surpass the $73,798 record high set in March.

Options traders have also stepped up their bets: regardless of who wins the US election, Bitcoin is expected to reach a record high of $80,000 by the end of November.

Shares tied to crypto prices were largely unchanged in after-hours trading on the US stock market on Monday. During regular trading hours, Coinbase was up 5%, and Bitcoin "whale" MicroStrategy rose nearly 9%. Investors are also keeping a close eye on Coinbase and MicroStrategy's earnings reports, scheduled to be released on Wednesday. On Monday, MicroStrategy, which has made a large bet on Bitcoin, closed at its highest price since March 15, 2000.