Bitcoin Tops $71,000 For First Time Since June As ETFs Eat Away At Supply Ahead Of US Elections

The price of Bitcoin blew past the $71,000 level on Tuesday for the first time since June to lead a market-wide rally. The crypto’s rise comes almost a week before the United States elections, which traders believe is a super bullish catalyst for the market regardless of a Republican or Democrat presidential victory.

According to CoinGecko data, the largest crypto by market capitalization is up 4% on the day to $71,214 and is now within striking distance of its all-time high of $73,737.

Spot Bitcoin ETFs Record Massive Inflows And Election Approaches 

Bitcoin has had a breakout year, largely driven by the U.S. Securities and Exchange Commission’s approval of spot Bitcoin exchange-traded funds (ETFs) earlier this year. Roughly $4 billion in net inflows poured into these funds in the last two weeks, data from Farside Investors shows.

BlackRock’s iShares Bitcoin Trust continued its Bitcoin buying spree, recording more than $314 million in fresh money on Monday.

Bitwise CIO Matt Hougan thinks the reaccelerating spot BTC ETF inflows are among the key factors that could drive Bitcoin to a six-figure price tag, coupled with the impending tightly contested presidential election.

Analysts at British multinational bank Standard Chartered project that Bitcoin could reclaim $73,000 highs on Election Day on November 5. The analysts further suggest that if ex-POTUS Donald Trump retakes the White House, Bitcoin may rocket to around $80,000. Trump has, so far, pledged more precise policies targeting the crypto industry. Moreover, they foresee a potential surge to an eye-popping $125,000 by the end of 2024 if Republicans win control of Congress.

Bitcoin’s Post-Halving Rally Underway

Meanwhile, veteran trader Peter Brandt has posited that Bitcoin’s post-halving rally may have already started and the asset may be entering a bullish phase. According to Brandt, the five-month inverted expanded triangle has now been completed. “The series of lower highs and lower lows since March has come to an end,” he added.

Simultaneously, Brandt has emphasized that follow-through will be crucial for Bitcoin. Earlier this month, the chartist forecasted that Bitcoin was on the brink of the “most anticipated” and “hoped-for” breakout in history. 

Several other crypto traders also observed that Bitcoin has scored a golden cross — a sign of strengthening bullish momentum in which the 50-day simple moving average (SMA) crosses above the 200-day SMA on an upward trajectory.

Bitcoin is now only 3.4% away from its March 13 all-time high.