Bitcoin Pushes Higher as ETF Inflows, US Regulation Optimism Lift Sentiment

(Bloomberg) -- Bitcoin pushed higher on Monday as a spurt of inflows into exchange-traded funds for the largest digital asset as well as optimism about the outlook for US regulations lifted sentiment.

Bitcoin rose on Monday, buoyed by a wave of inflows into exchange-traded funds (ETFs) tracking the world’s largest digital asset and optimism about the outlook for US crypto regulations.

Most cryptocurrencies in the top 10 advanced, with smaller tokens outperforming.

The cryptocurrency was up about 1% as of 8:30 a.m. in Singapore, closing in on the $70,000 level last seen in June. Smaller tokens such as second-ranked Ether and top-10 coin Solana also advanced.

US spot-Bitcoin ETFs attracted almost $2.4 billion in net inflows in the six days to Oct. 18, according to data compiled by Bloomberg, partly on bets that US crypto rules will become friendlier after the Nov. 5 presidential election.

Republican candidate Donald Trump is avowedly pro-crypto, to the extent that Bitcoin is seen as a so-called Trump trade. Democratic rival Vice President Kamala Harris has vowed to support a regulatory framework for the industry. This contrasts with the Biden administration’s crackdown on the sector.

The two key market trends are the elections and the global macroeconomic environment, according to David Lawant, head of research at crypto prime broker FalconX. The Bitcoin options market indicates that “forward implied volatility is heavily clustered around the election day and somewhat subdued leading to it and some time after it,” he wrote in a note.

Bitcoin options traders are pricing in a 70% chance of a market move of at least 15% by Nov. 19, according to Deribit data. The presidential election results are due by then.

Bitcoin rose almost 10% in the seven days to Sunday, marking the original cryptocurrency’s best weekly performance in more than a month. ETF demand helped the token reach a record high of $73,798 in March.

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