(Oct 29): Bitcoin rose past US$71,000 (RM310,377) for the first time since June, bolstered by inflows into dedicated exchange-traded funds (ETFs) as well as speculation about the potential outcome of next week’s US election.

The largest digital asset climbed as much as 2.7% before paring some of the move to change hands at US$71,415 as of 7.57am on Tuesday in New York. Smaller tokens such as second-ranked Ether and meme-crowd favourite Dogecoin also pushed higher.

Bitcoin is viewed by some as a so-called Trump trade because Republican presidential nominee Donald Trump embraced digital assets during campaigning. Trump is ahead in prediction markets, while polls show a neck-and-neck race against Democratic candidate Vice President Kamala Harris.

The token is continuing to “price in a Donald Trump election victory”, Tony Sycamore, a market analyst at IG Australia Pty, wrote in a note. Bitcoin needs a sustained break past US$70,000 to boost confidence that it can rally beyond March’s record high of US$73,798, he added.

Trump has vowed to make the US the crypto capital of the planet. Harris has adopted a more measured approach, pledging to support a regulatory framework for the industry. Their positions contrast with a crackdown on the sector under President Joe Biden.

Trump has also said that he would ask billionaire Elon Musk — a major donor to his campaign — to head up a push to cut government spending. The effort is nicknamed the Department of Government Efficiency, or DOGE, a reference to the Dogecoin token that Musk has embraced.

Musk’s affiliation with the Trump campaign helped to lift sentiment among traders, according to Arisa Toyosaki, co-founder of Cega, a crypto derivatives service provider.

Options traders have increased bets that Bitcoin will reach a peak of US$80,000 by the end of November regardless of who wins the election. Implied volatility around Election Day on Nov 5 is elevated. Spot-Bitcoin ETFs in the US have attracted about US$3.6 billion in net inflows so far this month.

Bitcoin lately weathered scaled back bets on Federal Reserve interest-rate cuts as well as a report of greater US scrutiny of Tether, a stablecoin that acts as linchpin in crypto trading. The original cryptocurrency has jumped 69% in 2024.

Uploaded by Felyx Teoh