Bitcoin surpassed $71,000 for the first time since June, buoyed by inflows into exchange-traded funds and speculation around next week’s U.S. election outcome.
The largest digital asset rose by up to 2.7% before paring gains, trading at $70,870 as of 5:30 a.m. in London on Tuesday. Smaller tokens, including the second-largest, Ether, and meme-favorite Dogecoin, also trended higher.
Bitcoin has been dubbed the “Trump trade” by some, as Republican presidential candidate Donald Trump has strongly endorsed digital assets during his campaign. Trump is currently leading in prediction markets, while polls indicate a tight race with Democratic vice-presidential candidate Kamala Harris.
“Bitcoin continues to ‘price in a Trump election victory,'” wrote Tony Sycamore, market analyst at IG Australia Pty. Bitcoin needs to sustain a breakout above $70,000 to reinforce confidence for a rally beyond its March record high of $73,798, he added.
Trump has vowed to make the U.S. the crypto capital of the world, while Kamala Harris has taken a more measured stance, promising to support a regulatory framework for the sector. Their positions contrast sharply with the current crackdown on the industry under President Joe Biden.
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