Bitcoin is regaining color and soaring to new heights. The flagship cryptocurrency came close to $70,000 on Monday, bringing back memories of its all-time high reached last March. This meteoric rise can be explained by a combination of factors, ranging from the renewed enthusiasm of institutional investors to the hope of a more favorable regulatory framework across the Atlantic.
The insatiable appetite for ETFs
At the heart of this new dynamic is the voracious appetite of exchange-traded funds (ETFs) for Bitcoin. In just six days, these investment vehicles have attracted nearly $2.4 billion in net inflows. A figure which reflects the growing interest of institutional investors in the digital asset.
This digital 2.0 gold rush is reminiscent of the frenzy that accompanied the launch of the first Bitcoin ETFs in the United States. At the time, these financial products played a crucial role in propelling Bitcoin towards its all-time high of $73,798.
The Trump effect on the crypto market
The ambient optimism in the crypto market also finds its source in the American political outlook. As the November 5 presidential election approaches, speculation is rife about the future of crypto regulation in the United States.
Donald TrumpRepublican candidate and fervent defender of cryptocurrencies, made Bitcoin a real « Trump trade ». His potential return to the White House is seen as a positive signal for the industry, after years of tension under the Biden administration.
For her part, the vice-president Kamala Harrisrepresenting the Democratic camp, promised to support a regulatory framework for the sector. A position that contrasts with the more repressive approach adopted until now.
Volatility at the rendezvous
This excitement around Bitcoin is also reflected in the options market. Analysts observe a concentration of implied volatility around the date of the election, a sign that investors anticipate significant movements in the coming weeks.
David Lawant, head of research at crypto broker FalconX, points out that the two main market trends currently are elections and the global macroeconomic environment. A conjunction that could well keep Bitcoin in the spotlight in the months to come.
A momentum that benefits the entire ecosystem
The rise of Bitcoin is dragging the entire cryptocurrency market in its wake. Ether, second largest crypto by capitalization, and other assets like Solana, follow the uptrendalthough with more moderate variations.
This positive dynamic revives the hopes of those who see cryptocurrencies as much more than a simple speculative asset. For many, Bitcoin’s comeback is a sign of growing market maturity and ever-widening adoption, among both retail and institutional investors.
- Bitcoin nears $70,000, driven by massive inflow of $2.4 billion into ETFs in six days
- Regulatory Optimism Related to 2024 US Elections Supports Crypto Market Rise
- Bitcoin Volatility Concentrates Around Presidential Election Date, Foreshadowing Big Moves to Come
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