Bitcoin tops $71,000 for first time since June as US election nears

By Sunil Jagtiani 

Bitcoin rose past $71,000 for the first time since June, bolstered by inflows into dedicated exchange-traded funds as well as speculation about potential outcomes from next week’s US election. 

The largest digital asset climbed more than 2 per cent, changing hands at $71,310 as of 10:45 a.m. on Tuesday in Singapore. Second-ranked Ether and meme-crowd favorite Dogecoin both added about 4 per cent. 

 

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.

 

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The token drew succor 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 $70,000 to boost confidence that it can rally beyond March’s record of $73,798, he added. 

 

Trump has vowed to make the US 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.

 

Trump has also said that he would ask billionaire Elon Musk — a major donor to his campaign — to head up a push to cut government spending. The effort is nicknamed the Department of Government Efficiency, or DOGE, a reference to the Dogecoin token that Musk has embraced.

 

Options traders have increased bets that Bitcoin will reach a peak of $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 US have attracted about $3.3 billion in net inflows so far this month.

 

Bitcoin has jumped 70 per cent in 2024 and lately weathered scaled back wagers on Federal Reserve interest-rate cuts as well as a report of greater US scrutiny of Tether, a stablecoin that acts as linchpin in crypto trading.