In a remarkable turn of events, the cryptocurrency market witnessed a significant surge on Wednesday, with Bitcoin edging closer to its all-time high. The surged by 1.2% to $72,055.0, just shy of its peak at $73,798.
Bitcoin boosted by Trump trade
The recent rally in Bitcoin and other cryptocurrencies can be attributed to the speculation surrounding the outcome of the upcoming presidential election. There is a growing belief that Donald Trump might emerge victorious over Kamala Harris, leading to a surge in market optimism. The election, scheduled for November 5, has sparked a wave of uncertainty and excitement among traders.
Trump’s favorable outlook towards cryptocurrencies, coupled with his promises of a crypto-friendly regulatory environment, has resonated well with investors. This shift in stance from previously skeptical remarks to a more supportive narrative has bolstered confidence in the crypto market.
On the other hand, Harris has also hinted at a regulatory framework for cryptocurrencies, although details remain vague. Nevertheless, her acknowledgment of the importance of crypto has instilled hope in the market, regardless of the election outcome.
Crypto price today: altcoins mixed despite Bitcoin jump
While Bitcoin led the charge with a notable price increase, altcoins displayed a mixed performance on Wednesday. Ethereum, the second-largest cryptocurrency, climbed by 1.8% to $2,669.06, while other altcoins like XRP and Litecoin witnessed varied movements. Dogecoin, however, experienced a decline of 2.5%, reflecting profit-taking by traders.
The market sentiment was cautious amidst expectations of upcoming economic indicators and central bank meetings. With pivotal readings on the horizon, investors remained vigilant. The Federal Reserve’s upcoming meeting to potentially adjust interest rates by a marginal 25 basis points added to the air of caution in the market.
Looking beyond the U.S., key decisions awaited from China, Japan, and Australia further contributed to the cautious approach adopted by investors. These global events are expected to have a significant impact on the crypto market in the coming days.
Bitcoin ETFs register strongest daily inflow since June
Notably, the U.S. witnessed a substantial influx of funds into Bitcoin Exchange-Traded Funds (ETFs) on Tuesday. The 12 spot bitcoin ETFs collectively recorded a net inflow of $870 million, marking the highest inflow since early June. Among the prominent ETFs, iShares Bitcoin Trust and Fidelity’s FBTC attracted significant investments, showcasing renewed interest in the cryptocurrency market.
Furthermore, the trading volume across these ETFs surged to $4.75 billion on Tuesday, a notable increase from the previous day. This heightened activity in the ETF space underscores the growing appetite for cryptocurrencies among institutional and retail investors alike.
Ambar Warrick contributed to this report.