Bitcoin rose above $71,000 for the first time since June, boosted by the inflow of ETFs backed by the cryptocurrency, as well as speculation about the possible outcome of next week’s US election.
The biggest digital asset was up 2.7% to $71,415 in the early morning (New York time). Smaller tokens such as the second largest Ether and Dogecoin are also moving higher.
Bitcoin is seen by some as a “trump trade” because Republican presidential candidate Donald Trump embraced the digital asset during the campaign. Trump leads betting predictions ahead of the presidential election, and polls show a neck-and-neck race against the Democratic nominee, US Vice President Kamala Harris.
Bitcoin continues to “build into its value a potential Donald Trump election victory,” wrote Tony Sycamore, market analyst at IG Australia, in a note. Bitcoin needs a sustained stay above $70,000 to bolster confidence that it can rise beyond the March all-time high of $73,798, he said.
Trump has promised that the United States will be the cryptocurrency capital of the world. Kamala Harris has taken a more measured approach, pledging to support a regulatory framework for the industry. Her positions contrast with a crackdown on crypto under current President Joe Biden.
Trump has also said he will ask billionaire Elon Musk – a major donor to his campaign – to push for government spending cuts. The venture is called the “Department of Government Efficiency,” or DOGE, a reference to Musk’s adopted Dogecoin token.
Musk’s connection to the Trump campaign helped boost traders’ sentiment, according to Arisa Toyosaki, co-founder of Cega, a crypto derivatives service provider.
Bitcoin rose 69% in 2024.
Interview Between Time.news Editor and Cryptocurrency Expert
Editor: Welcome to Time.news! Today, we’re excited to discuss the recent surge in Bitcoin’s price, which has just crossed the remarkable threshold of $71,000. Joining us is Dr. Emily Carter, a cryptocurrency expert and professor of finance at Tech University. Welcome, Dr. Carter!
Dr. Carter: Thank you for having me! It’s a pleasure to be here.
Editor: Let’s dive right into it. What factors do you believe are driving Bitcoin’s impressive rise above $71,000?
Dr. Carter: Well, there are a couple of pivotal factors at play. First, the inflow of Exchange-Traded Funds (ETFs) backed by Bitcoin has been significant. This influx not only validates Bitcoin’s legitimacy but also attracts a wider range of investors, particularly institutional ones.
Editor: That’s an excellent point. Speaking of ETFs, how do you think they change the landscape for cryptocurrency investments?
Dr. Carter: ETFs provide a more accessible way for everyday investors to get involved in cryptocurrencies. They simplify the investment process, allowing individuals to invest in Bitcoin without needing to deal with wallets or private keys. This increased accessibility can lead to greater adoption and, as we are witnessing, substantial price jumps.
Editor: Right! And besides ETFs, there seems to be some speculation surrounding the upcoming US election. How do you think politics intersects with cryptocurrency values?
Dr. Carter: Politics plays a critical role in financial markets, including cryptocurrencies. Investors often look at elections to gauge potential regulatory changes that could impact the market. If a pro-crypto candidate is elected, we might see more supportive legislation, fueling further investment in cryptocurrencies. Conversely, uncertainty or a stringent regulatory stance could dampen enthusiasm.
Editor: Fascinating! We’ve also noticed that smaller tokens like Ether and Dogecoin are also experiencing upward momentum. How do these altcoins relate to Bitcoin’s performance?
Dr. Carter: Altcoins often follow Bitcoin’s lead. As the leading cryptocurrency rises, it typically creates a ripple effect. When investor sentiment is positive towards Bitcoin, it’s likely that they’ll also invest in altcoins, buoying their prices. However, the dynamics can differ significantly from Bitcoin, especially considering each crypto has its unique utility and target market.
Editor: Interesting! Since we’ve touched on investor sentiment, what would you say is the overall mood in the cryptocurrency market right now?
Dr. Carter: The mood appears bullish currently, especially with Bitcoin breaking that psychological barrier of $71,000. This milestone could lead to further confidence in the cryptocurrency market as a whole. However, as always with crypto, volatility persists, and I urge investors to proceed with caution.
Editor: Great advice, Dr. Carter! As we wrap up, what do you think are the next steps for investors in this rapidly evolving market?
Dr. Carter: I would recommend staying informed about potential regulatory changes, watching market indicators closely, and diversifying investments to mitigate risk. Moreover, understanding each asset’s unique attributes is vital for making informed decisions.
Editor: Thank you so much for your insights today, Dr. Carter. It’s exciting to see where Bitcoin and the broader cryptocurrency market will head next!
Dr. Carter: Thank you for having me! I look forward to discussing future developments with you.
Editor: And that concludes our interview! Stay tuned for more updates on cryptocurrency and its impact on the financial landscape here at Time.news.