Bitcoin Surges Past $69,000 as Investors Bet on Improved Regulatory Environment After US ElectionBitcoin prices breached the $69,000 mark on Monday, reaching a multi-month high, fueled by investor optimism over improved regulatory conditions in the wake of the US presidential election and substantial inflows into exchange-traded funds (ETFs).As of 8:30 am Monday, Bitcoin was up about 1% at $69,372 (S$90,857), although it later retreated slightly but remained above $68,654 by 11 am
Bitcoin Surges Past $69,000 as Investors Bet on Improved Regulatory Environment After US Election
Bitcoin prices breached the $69,000 mark on Monday, reaching a multi-month high, fueled by investor optimism over improved regulatory conditions in the wake of the US presidential election and substantial inflows into exchange-traded funds (ETFs).
As of 8:30 am Monday, Bitcoin was up about 1% at $69,372 (S$90,857), although it later retreated slightly but remained above $68,654 by 11 am. This marked the cryptocurrency's closest approach to the $70,000 threshold since June.
The second-largest cryptocurrency, Ethereum, and other altcoins also climbed. US spot Bitcoin ETFs attracted net inflows of nearly $2.4 billion in the six days ending October 18, according to data compiled by Bloomberg.
This influx of capital is largely driven by market expectations for clearer rules governing cryptocurrencies in the US after the November 5 presidential elections. Republican candidate Donald Trump has openly supported cryptocurrencies, even referring to Bitcoin as "Trumptrade," while his Democratic rival, Vice President Kamala Harris, has pledged support for establishing a regulatory framework for the industry.
This expectation stands in stark contrast to the crackdown on the cryptocurrency sector under the Biden administration. The Biden administration has been cautious about the crypto industry and has implemented a series of measures, including increased scrutiny of stablecoins and decentralized finance (DeFi).
David Lawant, Head of Research at leading crypto brokerage FalconX, believes the election and global macroeconomic environment are two key factors driving Bitcoin's recent surge. In a report, he noted, "The Bitcoin options market is showing that implied volatility is mainly concentrated around the election, while it is slightly low in the period before and after the election."
It's worth noting that Bitcoin rebounded nearly 10% in the week ending Sunday, marking the cryptocurrency's best weekly performance in over a month. Driven by ETF demand, Bitcoin had hit an all-time high of $73,798 in March.
Currently, the market generally believes that regardless of who wins the election, the US will move toward a clearer regulatory framework for cryptocurrencies, which will help mitigate investor risks and drive Bitcoin prices higher. However, some analysts also point out that uncertainties remain in the cryptocurrency market, particularly macroeconomic factors such as a global recession and inflation, which could negatively impact the market.
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