[NEWS] Bitcoin surpasses $70,000 for first time since June

On the 29th, Bitcoin (BTC) surpassed $70,000 (approximately 10.7 million yen) for the first time since June this year, boosted by the inflow of funds into Bitcoin spot ETFs and the prediction of the results of the US presidential election to be held next week. At the time of writing, it was fluctuating at around $71,000 (approximately 10.84 million yen).

Bitcoin rose about 1% in the early morning of the 29th, then was sold for profit-taking and fell to $69,800 (approximately 10.6 million yen), but was soon bought and surpassed $70,000 again.

Other cryptocurrencies such as Ethereum (ETH) are also rising. Ethereum has exceeded $2,610 (approximately 400,000 yen).

Since former President Donald Trump, the Republican presidential candidate, expressed support for cryptocurrencies (virtual currencies) during the election period, trading surrounding his movements has been described as the so-called "Trump trade."

Trump is leading Democratic presidential candidate Vice President Kamala Harris in prediction markets such as PolyMarket. However, polls conducted by major US media outlets show the two in a close battle.

IG Australia market analyst Tony Sycamore said in a report that Bitcoin "continues to price in Trump's election victory," influenced by the stock price rise in the US market last night.

He added that Bitcoin needs to continue to exceed $70,000 to be sure of rising above its all-time high of $73,798 (approximately 11.21 million yen) set in March.

Trump has left a positive impression on cryptocurrencies, such as announcing his intention to "make the United States the cryptocurrency capital of the world." Meanwhile, Harris has taken a cautious stance on cryptocurrencies, promising to support a regulatory framework for the industry first.

The stance of both is in contrast to President Joe Biden's crackdown on cryptocurrencies.

Options traders predict $80,000

Options traders expect Bitcoin to hit a high of $80,000 by late November, regardless of who wins the election. Implied volatility has risen around the November 5 election.

The U.S. Bitcoin spot ETF has seen inflows of about $3.1 billion so far.

Bitcoin is set to rise about 66% in 2024. It is rising despite recent negative factors such as the Federal Reserve Board's tapering of interest rate cuts and increased scrutiny by U.S. authorities of Tether (USDT), a stablecoin that is the cornerstone of cryptocurrency trading.

Reference: The Block
Image: Shutterstock

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