Bitcoin trades above $70,000 for first time in over seven months

Bitcoin topped $70,100 at 22:10 UTC, the first time the largest cryptocurrency by market capitalization crossed the $70,000 level in more than seven months, according to The Block’s Bitcoin price page . It has since retraced its move and is trading hands around $69,800 at press time. 

The cryptocurrency has had a breakout year, largely propelled by the Security and Exchange Commission's approval of spot bitcoin exchange-traded funds in early January. Outside of a roughly weeklong period at the beginning of the year when it traded below $40,000, bitcoin has largely been rangebound between $50,000 and $70,000.

Federal Reserve rate cuts have also buoyed the cryptocurrency, which fell to a six-month low near $54,000 on Sept. 7. Since then, bitcoin has largely been on an upward trend, with a possible move to retest its all-time high of around $73,700 on the table. 

"Several factors support bitcoin's potential rise, particularly the anticipated interest rate cut by the U.S. Federal Reserve. The broader market expects a 25 basis point cut on November 7, which would lower rates to the 4.5% to 4.75% range, reflecting a need for adjustments to stabilize economic growth," Bitget Research Chief Analyst Ryan Lee said.

It’s possible the bullish sentiment is driven by the U.S. election polls showing Vice President Kamala Harris and crypto bull Donald Trump locked in a tight race in several battleground states. On the events trading platform Polymarket, the former president and now crypto founder is heavily favored to win. 

CoinShares also reported that October’s crypto  investment inflows climbed to $3.4 billion, pushing the year-to-date capital inflows to $27 billion—nearly triple the $10.5 billion record set in 2021. Spot bitcoin ETFs saw $997.6 million in net weekly inflows alone, while short-bitcoin positions also saw minor net outflows of $1.3 million.

Moreover, Emory University reported holding $15 million worth of shares in Grayscale Bitcoin Mini Trust, making it possibly the first institution of higher education to gain exposure to the cryptocurrency.

“We believe that current bitcoin prices and flows are heavily influenced by U.S. politics, with the recent surge in inflows likely linked to the Republicans' poll gains,” CoinShares Head of Research James Butterfill said.