The price of Bitcoin surpassed $72,000 for the first time since April, driven by inflows into exchange-traded funds and speculation about the presidential elections in the United States. Other tokens, such as Ether and Dogecoin, also showed a significant increase.
According to some, Bitcoin is being driven by what they consider to be Trump-backed operations, as the Republican presidential candidate has embraced digital assets during his campaign. All of this while President Joe Biden attacks the crypto sector, and Trump leads in prediction markets in a tight electoral race against Kamala Harris.
Trump has committed to making the United States the global capital of cryptocurrencies, while Harris advocates for a more regulated approach. Bitcoin has risen by 71% so far in 2024, and Bitcoin ETFs in the United States have attracted around $3.6 billion in net inflows this month.
Amid moderate bets on interest rate cuts by the Federal Reserve and increased scrutiny on Tether, a stablecoin in cryptocurrency trading, market volatility remains high. As the presidential elections approach, options traders continue to bet that Bitcoin will reach $80,000 by the end of November, regardless of the election outcome.
The initiative known as the Department of Government Efficiency (DOGE), referring to the Dogecoin token adopted by Elon Musk, has helped improve sentiment among traders, according to Arisa Toyosaki, co-founder of Cega, a provider of cryptocurrency derivatives services.
