Bitcoin Approaches $70,000 as $2.4 Billion Flows Into ETFs
(Bloomberg) — Bitcoin approached the $70,000 mark on Monday thanks to a surge in inflows into exchange-traded funds for the dominant digital asset and positive outlook on US regulations.
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The cryptocurrency saw a 1% increase before pulling back slightly to settle at $68,252 as of 8:32 a.m. in New York. Other smaller tokens like Ether, ranked second, and Solana, a top-10 coin, remained relatively stable.
US spot-Bitcoin ETFs brought in nearly $2.4 billion in net inflows over the six days leading up to Oct. 18, according to data compiled by Bloomberg, primarily due to expectations of more favorable US crypto regulations after the upcoming presidential election on Nov. 5.
Republican candidate Donald Trump has shown strong support for crypto, leading Bitcoin to be considered a “Trump trade.” On the other hand, Democratic rival Vice President Kamala Harris has expressed commitment to establishing a regulatory framework for the industry. This stands in contrast to the crackdown on the sector seen during the Biden administration.
The elections and the global macroeconomic climate are the two key factors influencing the market, as noted by David Lawant, head of research at crypto prime broker FalconX. The Bitcoin options market suggests that there is a significant increase in implied volatility around the election day, with calmer market conditions before and after that period.
Bitcoin surged by nearly 10% in the week leading up to Sunday, marking its strongest weekly performance in over a month. Demand for ETFs helped propel the token to an all-time high of $73,798 in March. The rally slowed down, with Bitcoin last trading above $70,000 back in June.
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