- At 22:10 UTC, Bitcoin reached $70,100, marking the first time in over seven months that the largest cryptocurrency by market capitalization has surpassed the $70,000 threshold.
Bitcoin reached $70,100 today, marking the first time in over seven months that the largest cryptocurrency by market value has surpassed the $70,000 mark. Since then, it has reversed course and is currently trading at about $69,800.
The Security and Exchange Commission’s licensing of spot bitcoin exchange-traded funds in early January has been a major factor in the cryptocurrency’s explosive year.
Bitcoin has mostly been rangebound between $50,000 and $70,000, with the exception of a roughly weeklong period at the start of the year when it traded below $40,000.
Rate cuts by the Federal Reserve have also helped the cryptocurrency, which on September 7 dropped to a six-month low close to $54,000. With a potential move to retest its all-time high of over $73,700, bitcoin has mainly been rising since that time.
Bitcoin’s potential increase is supported by a number of variables, most notably the expected interest rate drop by the US Federal Reserve. The need for changes to steady economic growth is reflected in the broader market’s expectation of a 25 basis point decrease on November 7, which would bring rates down to the 4.5% to 4.75% range.
The U.S. election polls that show Vice President Kamala Harris and cryptocurrency tiger Donald Trump in a close race in multiple key states may be the reason for the positive feeling. The former president and current cryptocurrency creator is strongly favored to win on the events trading platform Polymarket.
Additionally, according to CoinShares, October’s cryptocurrency investment inflows increased to $3.4 billion, bringing the year-to-date total to $27 billion, nearly double the 2021 high of $10.5 billion. Only spot bitcoin ETFs witnessed net weekly inflows of $997.6 million, while short-bitcoin holdings experienced $1.3 million in small net outflows.
Additionally, it was revealed that Emory University owned shares in Grayscale Bitcoin Mini Trust worth $15 million, potentially making it the first university to be exposed to the cryptocurrency.
We think that U.S. politics have a big impact on bitcoin pricing and flows right now, and the recent spike in inflows is probably related to the Republicans’ poll wins.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
