Bitcoin has seen a strong surge, crossing the $71,000 mark for the first time since June, as the world's most popular and valuable cryptocurrency has received support as the US election approaches and inflows into ETFs increase.
Bitcoin rose more than 2 percent to trade at $71,147 as of 0334 GMT, while second-largest cryptocurrency Ethereum jumped about 4 percent.
Some see Bitcoin as an alleged Trump bet because Republican presidential candidate Donald Trump embraced digital assets during the campaign. Markets are expecting Trump to win the election, while polls show a tight race between Trump and Democratic Vice President Kamala Harris.
Cryptocurrency exchange PolyMarket now puts Trump’s odds of winning the presidency at 62 percent, up from 48 percent a month ago.
Some see bitcoin gaining strength as markets price in a Donald Trump victory in the November 5 election, with Tony Sycamore, a market analyst at IG Australia Pty., writing in a note that bitcoin needs a sustained break of $70,000 to boost confidence in its ability to rise beyond its all-time high of $73,798 in March, according to Bloomberg.
It is noteworthy that the cryptocurrency market is witnessing increasing demand from institutional and individual investors alike, which has led to an increase in demand for Bitcoin as the most important cryptocurrency in the world.
Expectations that more countries will adopt more flexible regulations for cryptocurrencies are also contributing to increased investor confidence.
Many experts believe that this record rise in the price of Bitcoin reflects the growing confidence in this digital asset. However, they warn that cryptocurrency prices are extremely volatile, and investors should be careful.
