Key Takeaways:
Bitcoin (BTC), the world’s largest cryptocurrency by market capitalization, started the new week on a strong note after rising above the key $70,000 level for the first time in three months.
According to VanEck’s head of digital asset research, Matthew Sigel, the bullish price outlook for BTC has an increasing corelation with how the Presidential election in the US is playing out as bets largely suggest a Trump victory in November. Institutional investors have also shown a positive sentiment towards crypto exchange-traded funds (ETFs), which recorded net inflows of over $900 million last week.
Bitcoin Clears $70,000 As Pro-Crypto Candidate Trump Leads US Presidential Polls
Bitcoin rose as much as 3% on Monday to $70,203, which is just 5% shy of its all-time high of $73,700. The surge also shrugged off recent concerns over reports that the US government was probing stablecoin issuer Tether.
During an interview with CNBC, Sigel stated that Bitcoin’s current “bullish setup” ahead of next week’s elections is reminiscent of late 2020, which preceded a remarkable 120% increase in the cryptocurrency’s price over a two-month period. He also remarked that this pattern suggests a strong potential for BTC to rally once the election results are out.
Former President Donald Trump is largely expected to beat Democratic candidate and Vice President Kamala Harris in the upcoming election, with voting set to take place on November 5.
Trump has campaigned on promises of crypto-friendly regulation, with Sigel stating that the Republican candidate’s advocacy for the industry and support for Bitcoin places him clearly in the lead. Meanwhile, Harris has yet to directly mention anything related to crypto or Bitcoin even though her campaign has promised to support the sector if elected.
Polymarket data reveals that Trump leads the election by 65% to Harris’ 34%, indicating that voters are increasingly expecting a Republican victory. The election is turning out to be a major driving force for Bitcoin as investors are hoping that a Trump win will serve as a breakthrough for the crypto industry.
Renewed Investor Interest Sees $920 Million Worth Inflows Into Bitcoin ETFs
The election odds also contributed to the massive inflows into the crypto ETFs last week, with the spot Bitcoin ETFs recording inflows of $920 million while the spot Ethereum ETFs saw outflows totalling $35 million despite renewed investor interest. The inflows over the past seven days has pushed the total inflow into the twelve funds backed by BTC in October to over $3 billion.
Data from SoSo Value showed that spot Bitcoin ETFs trading in the US saw a daily net inflow of $402.08 million on Monday. In fact, the Bitcoin ETFs have seen 15 days of positive inflow throughout the month. This surge in net inflow also helped in keeping the price of BTC largely stable in October, with a 6% gain in recent weeks.
Recent data also points fingers at growing accumulation figures for Bitcoin among US-based investors, which serves as a key factor in its price trajectory. The US-to-Rest Reserve Ratio, an indicator comparing BTC holdings by US entities to those held by non-US institutions, has been steadily rising since Q4 2023, aligning well with Bitcoin’s price growth since that time. It also indicates a heightened demand for the digital asset by institutional investors.
Bitcoin’s dominance within the crypto market has also increased, hitting 59% in October, which is a 3.45% increase from the previous month. This trend reflects the cryptocurrency’s appeal as a resilient and stable asset in an otherwise volatile market.
At the time of writing, Bitcoin (BTC) is trading at $70,863 – up 4.76% in the last 24 hours.
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