Bitcoin has once again surged past the $70,000 mark, reaching its highest value since June and signaling renewed investor interest amid recent developments in the cryptocurrency landscape.
Data from CoinGecko reveals that Bitcoin, the world’s largest cryptocurrency by market capitalization, climbed 3% in a single day to $70,100, reflecting strong market confidence.
This upswing is partially driven by the latest wave of approved Bitcoin exchange-traded funds (ETFs), which provide institutional investors with a regulated entry point into the crypto market.
The popularity of these ETFs is notable, with industry giants like BlackRock leading the way. Just ten months since their debut in January, Bitcoin ETFs have already amassed over $20 billion in investments, according to Farside Investors.
Despite a notable $20 billion outflow from Grayscale’s competing fund, the net inflows highlight the strong demand for these new investment vehicles, with BlackRock’s iShares Bitcoin Trust emerging as a top performer. In fact, in March, Bitcoin reached a new all-time high of $73,737, following the ETF approvals, but saw some setbacks amid geopolitical tensions and concerns about U.S. Federal Reserve interest rate hikes.
This month, however, the Federal Reserve’s recent interest rate cut has rekindled demand for “risk-on” assets like Bitcoin. Lower borrowing costs have made Bitcoin and other cryptocurrencies more attractive to investors seeking high-growth opportunities.
Ethereum, the second-largest cryptocurrency, has also benefited, climbing to $2,566, while Dogecoin, boosted by recent comments from Elon Musk, surged over 13% to $0.16.
As U.S. elections approach on November 5, Bitcoin traders are bracing for increased volatility. A recent analysis from DeFi derivatives platform Derive points to a surge in options trading around an $80,000 strike price, with many traders betting on significant price movements.
Nick Forster, founder of Derive, noted that short-term option premiums have increased as traders prepare for potential price swings tied to election outcomes. According to Forster, the current market setup could lead to volatility as high as 20% around election day, with a one-in-three chance of a 10% swing.
This strategic positioning indicates that many traders are “hedging” against the anticipated uncertainty, paying higher premiums to manage risk. The election’s outcome may prove pivotal for Bitcoin’s trajectory, with investors watching closely for policy signals, particularly on cryptocurrency regulation.
