Bitcoin approaches a significant milestone, cryptocurrency enthusiasts are buzzing with excitement. The price of Bitcoin has soared from approximately $65,000 to over $73,000 in just a week, putting it a mere 2% away from breaking its all-time high (ATH) of $73,750, set on March 14, 2024. With the U.S. Presidential election just around the corner, many traders are speculating whether Bitcoin could reach $80,000 by Election Day.
In the last seven days, Bitcoin’s impressive rally has captured the attention of investors. Currently trading at an average price of $72,421, it has gained about 8% over the past week and over 13% in the last month. The global cryptocurrency market has also seen an uptick, with a 2% increase in value, bringing the total market capitalization to $2.42 trillion. The trading volume has surged by 4.18%, hitting $104.14 billion, driven by heightened activity as the elections draw near.
Bitcoin reached a peak of $73,544 before experiencing a brief pause in its rally. With 24-hour trading volumes at a robust $53.3 billion, it’s clear that traders are actively participating in the market, looking to capitalize on this bullish trend. Bitcoin’s market dominance has risen to 58.75%, further indicating its strong position in the cryptocurrency landscape.
As the political climate intensifies, some traders are viewing Bitcoin as what’s being called a “Trump trade.” This perspective stems from Donald Trump’s pro-cryptocurrency stance, which appeals to many investors looking for a favorable regulatory environment. While polls suggest a tight race between Trump and Vice President Kamala Harris, both candidates offer contrasting visions for cryptocurrency regulation. Trump promises to make the U.S. a global hub for crypto, while Harris supports a more structured regulatory framework, diverging significantly from President Biden’s approach.
Options markets are buzzing with activity as traders place increasing bets on Bitcoin hitting the $80,000 mark by the end of November. As Election Day approaches, market volatility is expected to peak, making this a crucial time for Bitcoin and other cryptocurrencies. Recent data indicates that over $84 million worth of long and short bets were liquidated in just 24 hours, with a significant majority—around 77%—being short positions. This suggests that many traders anticipated a downturn, but the market has proven otherwise.
A significant contributor to Bitcoin’s recent price surge has been the remarkable inflows into Bitcoin exchange-traded funds (ETFs). On October 29, Bitcoin ETFs recorded a net inflow of $870 million, the highest since June. BlackRock’s ETF, known as IBIT, accounted for a substantial portion of this with $642.87 million in inflows, bringing its total historical net inflow to nearly $24.94 billion. Fidelity’s FBTC also saw impressive performance, garnering a daily net inflow of $133.86 million.
These ETF inflows reflect growing institutional interest in Bitcoin, which is often seen as a sign of confidence in the asset’s future. As more investors look to gain exposure to Bitcoin through ETFs, this influx of capital may further propel the price upward.
As Bitcoin nears its all-time high, traders and investors are closely watching the market for signs of a breakout. With just 2% standing between Bitcoin and a new ATH, speculation about whether it will reach $80,000 by Election Day is mounting. The combination of favorable political sentiment, increased trading volume, and significant inflows into Bitcoin ETFs is fueling optimism.
Whether or not Bitcoin reaches this milestone, one thing is clear: the upcoming election is influencing investor sentiment and could play a crucial role in determining Bitcoin’s trajectory in the coming weeks. For now, traders are poised to take advantage of the volatility, keeping a keen eye on market developments as the election approaches.
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