Bitcoin speculators are once again setting their sights on the record highs reached in March, as optimism grows over riskier assets and the impending U.S. election.
After six months of price support this year, the stage is set for a perfect storm for Bitcoin and other crypto assets, wrote Brett Munster of Blockforce Capital. He cited a surge in global liquidity, including from China, which has been rolling out a raft of stimulus measures in recent days in an attempt to boost its economy.
The flagship cryptocurrency rose 2.9% to $68,376 on Wednesday, before paring its rally to around $67,800. Bitcoin last traded above $70,000 in July, and hit an all-time high of nearly $74,000 in March.
Global liquidity is on the rise again, as central banks around the world pump cheap capital into their economies, Munster wrote. When global liquidity has crossed its moving average in the past, it has often coincided with large upward moves in the price of Bitcoin, he added.
Other smaller tokens also rose, with Dogecoin up about 10% and XRP up about 2%.
US Vice President Kamala Harris' comments on supporting a regulatory framework for cryptocurrencies have added some optimism to the market.
The recognition comes after years of complaints from the crypto industry that U.S. officials have chosen a regulatory path through enforcement rather than providing clarity. Former President Donald Trump actively courted crypto voters during the current presidential race against Harris and has several ongoing crypto-related endeavors.
