Bitcoin tops $71,000 for first time since June
text size

Bitcoin tops $71,000 for first time since June

Traders raise bets that Bitcoin will reach $80,000 by end of Nov

Bitcoin surges past $70,000 for the first time since June 2024.
Bitcoin surges past $70,000 for the first time since June 2024.

DELHI - Bitcoin rose past US$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 United States election.

The largest digital asset climbed more than 2%, changing hands at $71,310 as of 10.45am on Tuesday in Singapore. Second-ranked Ether and meme-crowd favourite Dogecoin both added about 4%. 

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 $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% 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.

Do you like the content of this article?
COMMENT (4)