Bitcoin has surpassed the $64,000 mark
Bitcoin jumped above $64,000 for the first time in nearly a month on Monday, boosting the share prices of major stocks linked to the asset as traders assess a change in the tailwind.
The world's largest cryptocurrency by market capitalization rose 5.7 percent to $64,680, recovering losses suffered late last month due to concerns over bitcoin sales in Germany
The asset has since fallen to $64,550 at the time of writing.
The U.S. Federal Reserve rate cut and the changing political landscape in Washington are helping to fuel investor interest in cryptocurrencies, Pratik Kala, head of research at DigitalX, told Decrypt.
"If Trump wins, it could boost the cryptocurrency market and increase the likelihood of new leadership at the SEC," Kala said.
Inflows into bitcoin-traded U.S. spot exchange-traded funds, supply shortages after halving and the launch of Ethereum spot ETFs next week are also driving demand, Cala said.
SEC Chairman Gary Gensler, appointed by President Joe Biden, has been criticized by the SEC for his approach to managing the industry under what cryptocurrency advocates call a regime of regulation through litigation.
A changing of the guard at the nation's top regulator could lead to tighter regulation of cryptocurrencies and the introduction of new investment options, including the Solana exchange-traded fund, Cala said.
Amid the cryptocurrency resurgence, MicroStrategy's share price rose 15.3 percent to $1,611 on Monday, its highest since June 6, while Coinbase rose 11.4 percent to $242.
Traditional stocks associated with the asset class, which analysts consider indicators of cryptocurrency performance, have weakly tracked bitcoin's rise this year.
As a result, mining stocks also rose Monday as Bernstein Research argues that investors are becoming more receptive to the changing perception of Bitcoin as an energy asset.
If Trump also loses the election or the market believes his policies will cause further inflation and high interest rates, cryptocurrency prices could change, Kala added.