A large influx of funds into Bitcoin exchange traded funds (ETFs) and optimistic sentiment towards the regulatory outlook in the United States boosted the sentiment in the Bitcoin market, causing Bitcoin to rise on Monday, approaching $70000.
At 8:30 am on Monday (October 21), Bitcoin rose about 1% to reach the level of $69372 (SGD 90857), but then fell close to $68654 as of November 11.
The last time Bitcoin approached the level of $70000 was in June. Ethereum, ranked second, and other small cryptocurrencies have also seen an increase.
Republican candidate Trump openly supports cryptocurrency, to the extent that Bitcoin is seen as the so-called Trump trade. Democratic rival Vice President Kamala Harris has vowed to support the development of regulatory frameworks for the industry. This is in stark contrast to the crackdown on the industry during the Biden administration.
According to data compiled by Bloomberg, in the six days ending October 18th, US spot Bitcoin listed funds attracted nearly $2.4 billion in net inflows, partly due to market bets that US cryptocurrency rules will become more friendly after the November 5th presidential election.
David Lawant, research director at FalconX, a major cryptocurrency broker, believes that two key market trends are elections and the global macroeconomic environment. He wrote in a report, "The Bitcoin options market indicates that forward implied volatility is mainly concentrated before and after election day, and slightly depressed during the period before and after the election
Bitcoin rebounded nearly 10% in the week ending Sunday, marking the best weekly performance of cryptocurrency in over a month. Due to the demand for listed funds, Bitcoin reached a historic high of $73798 in March.