Bitcoin has crossed the $72,000 mark on Tuesday, reaching its highest point since early June, fueled by growing investor excitement surrounding the upcoming presidential election. As the largest cryptocurrency by market capitalization, Bitcoin experienced a 4.1% increase over the past 24 hours, now trading at $72,589.91, just shy of its all-time high of nearly $74,000 achieved in March.
Other cryptocurrencies are also witnessing impressive gains. Ethereum, another major player in the market, rose 5.5% to $2,651.17, while Solana increased by 3.9% to $181.40. Dogecoin, the meme token frequently endorsed by Trump ally Elon Musk, surged 9.7% to 18 cents.
Dogecoin’s rise follows Musk’s recent comments at a Trump rally, where he claimed he could help trim $2 trillion off the government’s annual budget. Previously, Musk had suggested he would lead the “Department of Government Efficiency,” or D.O.G.E, resulting in significant price jumps for the cryptocurrency.
Since the beginning of October, Bitcoin has climbed approximately 12%. During this time, political futures betting markets have shifted in favor of Republican nominee Donald Trump, although these indicators are thinly traded and reflect user sentiment.
Many crypto enthusiasts are rallying behind Trump, who has notably reversed his stance on cryptocurrencies this year, shifting from critic to supporter. In late July, Trump pledged to establish a Bitcoin strategic reserve and remove Securities and Exchange Commission Chair Gary Gensler, who is perceived as a regulatory hawk on digital assets.
Vice President Kamala Harris has also embraced cryptocurrencies, seeking to appeal to young, blockchain-friendly voters. Last month, she highlighted crypto as one of the “industries of the future” in her economic plan.
Regardless of whether Trump or Harris wins, the market anticipates a “friendlier stance” from the White House regarding cryptocurrencies, according to Ryan Lee, Chief Analyst at Bitget Research.
“Both candidates have expressed a commitment to providing clearer regulatory frameworks for digital assets, and Trump, in particular, has actively sought support from the crypto community,” Lee noted on Tuesday. “This political context has further boosted positive market sentiment, adding to Bitcoin’s momentum.”
The rally has also been supported by inflows into spot Bitcoin exchange-traded funds (ETFs), which launched in January, giving financial advisors and institutional investors unprecedented access to the token. According to Bitget data, investors have poured $2.4 billion into these trading vehicles over the past six days.
John Patrick Mullin, CEO of blockchain company Mantra, believes that a price target of $100,000 is now a “logical goal” for Bitcoin, although it depends on how aggressively the Federal Reserve cuts interest rates. Lower borrowing costs tend to enhance the appeal of risk-on assets like cryptocurrencies, as their higher returns attract more investors.
Crypto-related stocks have largely been trading higher as well. Major exchange Coinbase saw a 1.2% gain, while Bitcoin proxy MicroStrategy jumped 5.3%. However, online trading platform Robinhood dipped by 0.4%. The S&P 500 index was down by 0.3%.
In summary, as the presidential election approaches, the enthusiasm and momentum surrounding cryptocurrencies are evident, with Bitcoin and other digital assets potentially reaching new heights due to positive market sentiment.