The global cryptocurrency market has surged significantly over the past week as investor sentiment has turned from neutral to greed. This boom was largely driven by Bitcoin, the world’s largest cryptocurrency by market cap, coming within touching distance of its all-time high of $73,798.
Bitcoin Hits $72,000 as US Election Tips in Favor of Pro-Crypto Former President Donald Trump
The apex cryptocurrency witnessed its price rise by 1.2% to trade at $72,055 on Wednesday as it is largely speculated that Donald Trump will beat Kamala Harris in the upcoming US Presidential election on November 5.
The sector picked up steam in recent weeks as prediction markets largely favored a second Trump term at the White House. However, political analysts point to a tightly contested election that is still “too close to call”.
Throughout his campaign, Trump has taken a largely pro-crypto stance, promising friendlier regulation and taking measures to ensure that all the remaining Bitcoins will be mined in the United States.
Although Harris also pledged her support for a crypto framework, she has not provided any clear policy recommendation. Nevertheless, her comments have spurred speculation that crypto will be the big winner regardless of who wins the election.
Crypto Market Booms, But With Mixed Reactions Across the Board
The broader cryptocurrency market, including the popular altcoins and memecoins, witnessed newfound gains, but there were also a few mixed reactions.
Ether (ETH), the world’s second-largest crypto by market cap, climbed 1.8% to $2,669, while other major altcoins like Ripple (XRP), Cardano (ADA), and Polygon (POL) didn’t move as expected. Solana (SOL) was lagging, dropping 2.5% in the last 24 hours as traders locked in profits from the past two weeks.
Among the meme coins, it was Dogecoin (DOGE) that performed the best, extending recent gains by 2.7%. The DOGE price surged 20% over the week and 40% over the month before facing a consolidation today. Nevertheless, the popular memecoin endorsed by Elon Musk has achieved its biggest peak since late May.
Despite the optimism, caution persists in the financial markets. Focus has now turned towards a string of key economics readings from the US and EU due in the coming days. The US Federal Reserve is set to hold a meeting next week where the central bank is widely expected to cut interest rates by 25 basis points.
The markets are also closely observing movements in China, where the top economic body is set to meet next week to decide on more fiscal spending. The Bank of Japan will decide on its rates today, while the Reserve Bank of Australia meets next week to decide on its rates.
Spot Bitcoin ETFs Record Strongest Daily Inflow in Seven Months
Bitcoin-backed exchange-traded funds (ETFs) also registered their strongest daily inflow since June. The 12 Bitcoin ETFs trading in the US witnessed daily net inflows reach $870 million on Tuesday.
The iShares Bitcoin Trust (IBIT), the spot Bitcoin ETF issued by Wall Street heavyweight BlackRock, led the charts by recording $642.87 million in net inflows, which is its highest single-day inflow in more than seven months.
Fidelity’s FBTC had $133.85 million in inflows, Bitwise’s BITB took in $52.49 million, VanEck’s HODL attracted $16.52 million, and ARK Invest’s ARKB logged $12.39 million in new capital. The total trading volume across all spot Bitcoin ETFs climbed to $4.75 billion yesterday, which is a notable increase from the previous day’s $3 billion.
