Bitcoin has once again surged beyond US$70,000, marking a comeback after months of volatility, although it is now trading around US$69,800. This is the first time since June that the cryptocurrency has surpassed this threshold, driven by renewed interest in recently approved exchange-traded funds (ETFs), which have provided a regulated path for institutional investors to gain exposure to the asset.
The surge coincides with increased ETF inflows, totalling over US$20bn this year, with BlackRock’s iShares Bitcoin Trust leading the pack. The consistent inflows highlight a growing interest from traditional investors, particularly as ETFs offer a safer, regulated option for holding Bitcoin. This influx has been crucial for Bitcoin’s latest rally, with demand rebounding following the Federal Reserve’s recent interest rate cuts.
As Bitcoin approaches its all-time high of US$73,737, set earlier this year, analysts are closely watching for the potential impact of the upcoming US presidential election. The election outcome, alongside ongoing changes in economic policy, could either further boost Bitcoin’s price or create further volatility.