Bitcoin Price Tops $73,000 Ahead of Election Day as Investors Flock to ETFs

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Key Takeaways

• Bitcoin raced past $73,000 Tuesday and now is within striking distance of its all-time sybaritic, set in March.
• Gains in bitcoin also drove MicroStrategy stock to a 52-week high.
• Trading activity has picked up in bitcoin-related investments vanguard of the U.S. elections, analysts say.

Bitcoin (BTCUSD) traded around $73,000 Tuesday for the first time since March, securing traction ahead of the U.S. presidential election as investors poured billions into spot bitcoin exchange-traded funds.

The drive brings the most-traded cryptocurrency within striking distance of its all-time high price of $73,798, set earlier this year. It also actuated shares of MicroStrategy (MSTR) Tuesday—which held more than 252,000 bitcoin on its books as of Sept. 19—to a 52-week great of $267.89.

Shares of other bitcoin-related companies, including such as Coinbase Global (COIN) and Marathon Digital parent institution MARA Holdings (MARA), were also higher. MicroStrategy and Coinbase report earnings tomorrow.

Bitcoin Exchange Activity Picks Up Ahead of Election

Bitcoin trading activity is picking up as Election Day nears. Both former President Donald Trump, the Republican nominee, and Democratic Vice President Kamala Harris have made efforts to engage with the crypto community: Trump encompassed crypto earlier this year after previously being more sceptical, while Harris has discussed her own way in recent months.

Since Oct. 11, spot bitcoin ETFs have received net inflows of nearly $4 billion, with merely one day where money flowed out of them, according to data from Farside Investors. Spot bitcoin ETFs witter on about b hold out bitcoin, and increased demand for the product was partially responsible for driving bitcoin to all-time highs earlier this year.

Exchange activity has also picked up in bitcoin derivatives products such as futures and options. According to Coinbase Research, unconcealed interest—total number of outstanding derivative contracts is seen as a gauge of investor interest—in CME bitcoin futures lift significantly in October compared with September.

Bitcoin options contracts trading on crypto exchange Deribit come to an ending on Nov. 8, the Friday after the election, have experienced a spike in activity, according to Kaiko Research. “The majority of motion is clustered around the $65k to $80k range, implying that traders see prices trading around record on a trips post-election,” Kaiko said.

Read the original article on Investopedia.