Bitcoin (BTC) rose above the $73,000 mark early Wednesday morning Taiwan time, reaching $73,600 at one point, just about 0.3% away from the historical high set in March this year. Before the deadline, the Bitcoin price had fallen back to $72,300.
Due to Republican presidential candidate Donald Trump expressing support for digital assets during the campaign, some traders view Bitcoin as part of the so-called 'Trump trade.' Current market predictions show Trump leading over Democratic candidate Kamala Harris in terms of winning probability, while polls indicate a tug-of-war between the two.
According to a report from Bloomberg, IG Australia Pty market analyst Tony Sycamore pointed out that Bitcoin continues to 'reflect the pricing of Trump's election victory.' He added that Bitcoin needs to consistently break through $70,000 to boost confidence in rebounding past the historical high of $73,798 set in March.
Options traders have increased bets on Bitcoin reaching $80,000 before the end of November, regardless of who wins the election. Implied volatility around Election Day (November 5) is high.
BlackRock Bitcoin ETF trading volume hits a six-month high
As Bitcoin approaches its historical high, the U.S. Bitcoin spot ETF has attracted about $3.6 billion in net inflows so far this month. Bloomberg senior ETF analyst Eric Balchunas stated on the social platform X that the Bitcoin spot ETF issued by BlackRock (ticker: IBIT) had a trading volume of $3.3 billion on Tuesday, setting a six-month record.
Balchunas noted that ETF trading volume usually spikes during market downturns or crises; however, sometimes volume can also surge when there is a 'FOMO' frenzy (fear of missing out), as seen with the ARKK fund in 2020. Given the significant price increase of Bitcoin over the past few days, he speculates that the surge in IBIT trading volume may have been triggered by FOMO sentiment, which also indicates that we might see (more) large inflows this week.
$IBIT traded $3.3b today, biggest number in 6mo, which is a bit odd bc btc was up 4% (typically ETF volume spikes in a downturn/crisis). Occasionally tho volume can spike if there a FOMO-ing frenzy (a la $ARKK in 2020). Given the surge in price past few days, my guess is this is… pic.twitter.com/z44ZfggHVm
— Eric Balchunas (@EricBalchunas) October 29, 2024
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