Bitcoin Reaches New Heights

Bitcoin topped $70,100 at 22:10 UTC, marking the first time the largest cryptocurrency by market capitalization crossed the $70,000 level in over seven months, according to The Block’s Bitcoin price page. It has since retraced its move and is trading around $69,800 at the time of writing.

The cryptocurrency has had a breakout year, largely propelled by the SEC's approval of spot bitcoin exchange-traded funds in early January. Outside of a roughly weeklong period at the beginning of the year when it traded below $40,000, bitcoin has largely remained rangebound between $50,000 and $70,000.

Federal Reserve rate cuts have also supported the cryptocurrency, which fell to a six-month low near $54,000 on September 7. Since then, bitcoin has been on an upward trend, with a possible move to retest its all-time high of around $73,700.

"Several factors support bitcoin's potential rise, particularly the anticipated interest rate cut by the U.S. Federal Reserve. The broader market expects a 25 basis point cut on November 7, which would lower rates to the 4.5% to 4.75% range, reflecting a need for adjustments to stabilize economic growth," said Bitget Research Chief Analyst Ryan Lee.

Bullish sentiment may also be fueled by U.S. election polls indicating Vice President Kamala Harris and crypto advocate Donald Trump in a tight race in several battleground states. On the events trading platform Polymarket, Trump is heavily favored to win.

CoinShares reported that October's crypto investment inflows climbed to $3.4 billion, pushing year-to-date capital inflows to $27 billion—nearly triple the $10.5 billion record set in 2021. Spot bitcoin ETFs saw $997.6 million in net weekly inflows alone, while short-bitcoin positions experienced minor net outflows of $1.3 million.

Additionally, Emory University reported holding $15 million worth of shares in Grayscale Bitcoin Mini Trust, making it possibly the first institution of higher education to gain exposure to the cryptocurrency.

"We believe that current bitcoin prices and flows are heavily influenced by U.S. politics, with the recent surge in inflows likely linked to the Republicans' poll gains," said CoinShares Head of Research James Butterfill.