Crypto-related stocks climbed in Tuesday’s pre-market session as Bitcoin surged past $70,000 — a level the asset hadn’t reached since June.
The cryptoasset last traded around $71,073, marking a 4% jump on the day. Despite this gain, it has yet to reach its record peak of $73,737.
As Bitcoin’s price soared, it inevitably had a ripple effect across the market. Consequently, crypto exchange Coinbase saw its shares rise 4%. MicroStrategy climbed 5%. Bitcoin mining companies also benefited from the positive sentiment; US-listed shares in Bitfarms jumped 3.7%, while Riot Platforms and Hut 8 both rose over 3%.
Further, investment vehicles tied directly to Bitcoin’s performance, such as the ProShares Bitcoin Strategy ETF and the iShares Bitcoin Trust, also climbed, adding 2.5% and 2.2% respectively. This movement reflects investors’ confidence in Bitcoin’s ongoing value, especially as it approaches its previous peak.
Current Rally Outpaces Summer High
Alex Kuptsikevich, the lead market analyst at FxPro, commented that the current market prices are the highest they’ve been since the end of July. Previously, when the market hit these price points, it paused and subsequently declined.
“This time, the trend is more bullish, as the market has been in an uptrend since early September,” he said.
Bitcoin Rallies on Strong ETF Demand and Pro-Crypto Election Promises
Bitget Research’s chief analyst Ryan Lee said the recent spike in Bitcoin’s price can be largely attributed to increased demand for spot Bitcoin ETFs. Over the last six days, these ETFs have seen a record $2.4b inflow since their inception in Jan. 2024, signaling strong market support.
Additionally, the upcoming US presidential election has added another layer of influence. With both major candidates hinting at more favorable regulations for cryptocurrencies, the market is hopeful for a clearer legal framework, which could further legitimize and stabilize digital assets.
“Both candidates have expressed a commitment to providing clearer regulatory frameworks for digital assets, and Trump, in particular, has actively sought support from the crypto community,” Lee said.
Technical indicators have also turned bullish, with Bitcoin’s 50-day moving average surpassing its 200-day moving average, a signal often associated with the start of a bullish trend. Coupled with a positive Relative Strength Index, these signs suggest Bitcoin might test its yearly high of $73,000 soon.
In sum, the confluence of ETF capital inflows, hopeful political signals, and bullish market indicators have created a favorable atmosphere for Bitcoin’s price to climb, though investors should remain cautious of the market’s inherent volatility.
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