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Cryptocurrency News Articles
Bitcoin (BTC) Price Nears $70K as ETF Inflows Surge, Election Promises Favorable Regulatory Conditions
Oct 21, 2024 at 11:02 am
Bitcoin continued its upward trajectory on Monday, October 21, fueled by a surge in exchange-traded fund (ETF) inflows and increased optimism surrounding future regulatory conditions in the United States.
Bitcoin rose on Monday, October 21, as a surge in exchange-traded fund (ETF) inflows and optimism over future U.S. regulatory conditions lifted the largest digital asset, in turn boosting broader market sentiment toward cryptocurrencies.
By early morning in Singapore, Bitcoin saw a modest increase of about 1%, moving closer to the key $70,000 mark last reached in June.
Other cryptocurrencies also advanced in the rally, with prominent digital assets like Ether and Solana showing gains. Ether, the second-largest token by market capitalization, and Solana, among the top 10 digital currencies, followed Bitcoin in rising on the back of the positive market momentum.
Bitcoin’s rise is largely attributed to strong inflows into U.S. spot-Bitcoin ETFs. These funds attracted nearly $2.4 billion in net investments in the six days leading up to October 18, according to data compiled by Bloomberg. The inflows highlight investor confidence as many anticipate the upcoming U.S. presidential election on November 5 could lead to a more favorable regulatory landscape for the cryptocurrency industry.
Speculation is mounting that a change in leadership could result in a more crypto-friendly regulatory environment. Former U.S. President Donald Trump, running as the Republican candidate, has expressed a pro-Bitcoin stance, leading some to view the token as part of the so-called “Trump trade.” On the other hand, Democratic candidate and current Vice President Kamala Harris has indicated her intention to support a regulatory framework that could foster innovation in the sector. This contrasts with the regulatory clampdown that has characterized the Biden administration’s approach to the cryptocurrency space.
Two critical factors are driving market sentiment, according to industry experts: the upcoming U.S. presidential election and the broader global macroeconomic environment. David Lawant, head of research at FalconX, a crypto prime broker, observed that the Bitcoin options market shows a concentration of implied volatility around the election day. He noted that while volatility appears to be muted leading up to the election and immediately after, it is expected to increase as political developments unfold.
This link between Bitcoin’s performance and political events is not new. In the past, cryptocurrency markets have been sensitive to major elections and regulatory shifts, with investors adjusting their positions based on expectations of policy changes. The current rally in Bitcoin prices reflects this dynamic, with traders speculating that the election could pave the way for more lenient or supportive regulatory frameworks, depending on the outcome.
Bitcoin has had a strong week, posting a nearly 10% increase in the seven days leading up to Sunday, marking its best weekly performance in over a month. The rally has been largely driven by demand for ETFs, which offer institutional investors a regulated and secure way to gain exposure to digital assets.
Bitcoin ETFs previously helped the token reach record highs, including a peak of $73,798 in March earlier this year. The renewed interest in these investment vehicles is seen as a key factor contributing to Bitcoin’s ongoing strength in the market.
As the election approaches and the potential for significant regulatory changes comes into view, investors and market participants are keeping a close watch on developments in the political landscape. The surge in ETF inflows indicates that many believe a shift toward more crypto-friendly regulations could benefit the sector in the long term.
With Bitcoin approaching the $70,000 level, all eyes are on whether the upcoming election will bring about the regulatory clarity that many in the cryptocurrency industry have been seeking. Should the anticipated regulatory shift materialize, it could further bolster the price of Bitcoin and other digital assets, potentially pushing them to new heights in the months to come.
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- After a hiatus of more than a year occasioned by the COVID-19 pandemic, The Social – Bali’s most innovative, engaging, and fun-filled “watering-hole” has reopened in the heart of Seminyak to warmly welcome old and new friends to its new state-of-the-art sports bar, dining, and entertainment venue.
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- Oct 21, 2024 at 02:20 pm
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- SEC Approves Options Trading for Bitcoin ETFs, Reshaping Market Dynamics and Attracting Institutional Investors
- Oct 21, 2024 at 02:20 pm
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- Oct 21, 2024 at 02:20 pm
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