Investing.com - Bitcoin (BTC) surged during the early hours of Wednesday, hitting a near three-month high of $67,800 before falling back to $65,000 and then back to $67,500 during the day’s trading.

Traders at QCP Capital attributed the volatility to several factors dating back to the start of the week. The firm said in a Telegram broadcast that the rally could be driven by the election, with Republican Donald Trump gaining traction in prediction markets and polls, and Democrat Kamala Harris’s pledge to create a regulatory framework for cryptocurrencies adding momentum, signaling a more friendly stance toward the industry.

QCP added that disappointment with China’s recent economic stimulus has prompted some investors to shift capital from Chinese equities to Bitcoin, a scenario the firm predicted on Oct. 8.

Chinese Finance Minister Lan Fu'an had promised new steps to support the property sector and hinted at increased government borrowing at a news conference on Saturday, but the comments fell short of expectations, raising the possibility of capital flowing away from China-linked assets.