Bitcoin nears record high ahead of US election

Bitcoin surged to the $72,000 level for the first time since June on bets that irrespective of who wins the United States elections, the crypto craze shall remain with its value hitting $80,000 by December.

Bitcoin stood just a whisker away from its peak of $73,803.25 and was last bought $72,322.08, on track to gain 13% for the month.

The recent surge in Bitcoin prices comes against the backdrop of a robust increase in investments in US spot Bitcoin ETFs, which have garnered approximately $3.6 billion in net inflows this month alone. This influx is indicative of growing institutional interest and confidence in Bitcoin as a legitimate asset class.

Bitcoin prices hit an all-time high of $73,750 in March and have jumped 70% in 2024.

According to multiple foreign news agencies, Bitcoin's recent rally is being dubbed the "Trump trade" by some market watchers, as Republican presidential nominee Donald Trump has actively expressed support for digital assets throughout his campaign. Current prediction markets lean toward a Trump victory, setting the stage for a closely contested race against Democratic candidate Vice President Kamala Harris.

"Bitcoin's strength should persist if the odds for a Republican sweep continue to grow, as a less likely Democratic sweep might meet a generalized sell-off," said Manuel Villegas, digital assets analyst at Julius Baer.