Bitcoin is back at stratospheric levels

© André Francois McKenzie- Unsplash

Bitcoin is recovering and soaring to new heights. The flagship cryptocurrency nearly hit $70,000 on Monday, reviving memories of its all-time high reached last March. This meteoric rise is explained by a combination of factors, ranging from renewed enthusiasm from institutional investors to hopes for a more favorable regulatory framework across the Atlantic.

The insatiable appetite of ETFs

At the heart of this new dynamic is the voracious appetite of exchange-traded funds (ETFs) for Bitcoin. In just six days, these investment vehicles attracted nearly $2.4 billion in net inflows. A figure that reflects the growing interest of institutional investors in the digital asset.

This rush for digital gold 2.0 is reminiscent of the frenzy that accompanied the launch of the first Bitcoin ETFs in the United States. At the time, these financial products played a crucial role in propelling Bitcoin to its historic high of $73,798.

The Trump Effect on the Crypto Market

Donald Trump © Wikimedia Commons

The ambient optimism on the crypto market also finds its source in the outlook American politics. As the November 5 presidential election approaches, speculation is rife about the future of crypto regulation in the United States.

Donald Trump, Republican candidate and fervent defender of cryptocurrencies, has made Bitcoin a real ” Trump trade “. Her potential return to the White House is seen as a positive signal for the industry, after years of tensions under the Biden administration.

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For her part, Vice President Kamala Harris, representing the Democratic camp, has promised to support a regulatory framework for the sector. A position that contrasts with the more repressive approach adopted until now.

Volatility on the agenda

This excitement around Bitcoin is also reflected in the options market. Analysts are seeing a concentration of implied volatility around the election date, a sign that investors are anticipating significant moves in the coming weeks.

David Lawant, head of research at crypto broker FalconX, points out that the two main market trends right now are elections and the global macroeconomic environment. A conjunction that could well keep Bitcoin in the spotlight in the months to come.

A momentum that benefits the entire ecosystem

The rise of Bitcoin is dragging the entire cryptocurrency market in its wake. Ether, the second largest crypto by capitalization, and other assets such as Solana, are following the bullish trend, although with more moderate variations.

This positive dynamic is reviving the hopes of those who see cryptocurrencies as much more than a simple speculative asset. For many, Bitcoin's resurgence is a sign of growing market maturity and ever-widening adoption among both retail and institutional investors.

• Bitcoin nears $70,000, buoyed by massive $2.4 billion inflow into ETFs in six days
• Regulatory optimism over 2024 US elections supports crypto market rally
• Bitcoin volatility spikes around presidential election date, hinting at major moves to come

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