(Bloomberg) — Bitcoin closed close to $70,000 on Monday as a wave of inflows into exchange-traded funds for the largest digital asset and optimism about the outlook for U.S. regulations supported sentiment.
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The cryptocurrency rose 1% before paring gains in trading. Little changed at $68,720 as of 11am in Singapore. Smaller tokens like second-ranked Ether and top-10 coin Solana hovered within a narrow range.
U.S. spot Bitcoin ETFs attracted nearly $2.4 billion in net inflows in the six days through Oct. 18, data compiled by Bloomberg show, partly on bets that U.S. crypto rules will become friendlier after the 5 presidential election. November.
Republican candidate Donald Trump is openly pro-crypto, so much so that Bitcoin is seen as a so-called Trump trade. Democratic rival Vice President Kamala Harris has vowed to support a regulatory framework for the industry. That contrasts with the crackdown on the sector under the Biden administration.
The two most important market trends are the elections and the global macroeconomic environment, according to David Lawant, head of research at crypto prime broker FalconX. The Bitcoin options market indicates that “forward implied volatility is strongly clustered around Election Day and somewhat subdued leading up to Election Day and for some time thereafter,” he wrote in a note.
Bitcoin rose nearly 10% in the seven days through Sunday, the native cryptocurrency’s best weekly performance in more than a month. Demand for ETFs helped the token reach an all-time high of $73,798 in March. The rally cooled and Bitcoin last traded above $70,000 in June.
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