Bitcoin Surges to Over $73,000, Reaches 6-Month High
Bitcoin’s price has surged to a six-month peak, surpassing $73,500 in the final week before the U.S. presidential election. This latest rise marks Bitcoin’s highest value since April and reflects a 6% gain as of Tuesday, October 29, at 3 p.m. EDT. According to Forbes, the cryptocurrency’s value has jumped by 13% throughout October, outpacing the S&P 500, which recorded a modest 1% increase this month.
A mix of economic factors is driving the digital currency’s rally, including anticipation around the November 5 election and its potential policy impacts. Bitcoin’s growth comes as other cryptocurrencies also gain traction; Ethereum climbed 4% to $2,637, its highest in 10 days, and Solana rose to a three-month high of $182.
Notable investors, such as hedge fund manager Paul Tudor Jones, view Bitcoin as a hedge against inflation, particularly amid government spending proposals from presidential candidates Kamala Harris and Donald Trump, both of which could add substantially to the national debt. Despite recent economic interventions, scepticism remains about the Federal Reserve’s strategies to manage inflation, especially following its recent rate cut in September – the first since early 2020. The Fed lowered the interest rate by 50 basis points, bringing it down to a range of 4.75% to 5%, shifting from the previous 5.25% to 5.5%, a level not seen since 2001.
Other factors, such as the January 2024 approval of spot Bitcoin ETFs, have also spurred interest from institutional investors. Spot Bitcoin ETFs led by BlackRock, Fidelity, and Grayscale now collectively hold approximately $66 billion in Bitcoin, accounting for about 5% of the global Bitcoin market.
Meanwhile, former President Donald Trump has expressed a pro-Bitcoin stance as he campaigns, positioning himself as a digital currency advocate and promising to hold all government-owned Bitcoin as part of a “strategic national Bitcoin stockpile” if elected. As cryptocurrency continues to experience fluctuations tied to political and regulatory developments, Bitcoin’s rise amid pre-election uncertainty indicates growing investor interest in digital assets as potential economic safeguards.
