Bitcoin Price Tops $73,000 Ahead of Election Day as Investors Flock to ETFs
Bitcoin (BTCUSD) traded around $73,000 Tuesday for the first time since March, gaining traction ahead of the U.S. presidential election as investors poured billions into spot bitcoin exchange-traded funds.
The momentum brings the most-traded cryptocurrency within striking distance of its all-time high price of $73,798, set earlier this year. It also propelled shares of MicroStrategy (MSTR) Tuesday—which held more than 252,000 bitcoin on its books as of Sept. 19—to a 52-week high of $267.89.
Shares of other bitcoin-related companies, including such as Coinbase Global (COIN) and Marathon Digital parent company MARA Holdings (MARA), were also higher. MicroStrategy and Coinbase report earnings tomorrow.
Bitcoin trading activity is picking up as Election Day nears. Both former President Donald Trump, the Republican candidate, and Democratic Vice President Kamala Harris have made efforts to engage with the crypto community: Trump embraced crypto earlier this year after previously being more sceptical, while Harris has discussed her own approach in recent months.
Since Oct. 11, spot bitcoin ETFs have received net inflows of nearly $4 billion, with only one day where money flowed out of them, according to data from Farside Investors.Spot bitcoin ETFs hold bitcoin, and increased demand for the product was partially responsible for driving bitcoin to all-time highs earlier this year.
Trading activity has also picked up in bitcoin derivatives products such as futures and options. According to Coinbase Research, open interest—total number of outstanding derivative contracts is seen as a gauge of investor interest—in CME bitcoin futures rose significantly in October compared with September.
Bitcoin options contracts trading on
Read more on investopedia.com
