As Bitcoin approaches $70,000 once again, market speculators are eyeing the possibility of it surpassing record levels last seen in March.
Optimism around riskier assets is growing as investors prepare for the upcoming U.S. elections.
“After six months of price consolidation this year, the stage is set for a perfect storm in favor of Bitcoin and other cryptocurrencies,” said Brett Munster of Blockforce Capital. Munster pointed to the surge in global liquidity, particularly from China, which has recently implemented a series of stimulus measures aimed at reviving its economy.
Bitcoin rose 2.9% to $68,376 on Wednesday before falling slightly to around $67,800. BTC last reached $70,000 in July and hit an all-time high of $74,000 in March.
“Global liquidity has been on the rise again as central banks around the world have injected cheap capital into their economies,” Munster said. “In the past, when global liquidity has breached its moving average, it has typically coincided with significant upward movements in the price of Bitcoin.”
Adding to the market’s optimism, Vice President Kamala Harris this week pledged to support a clear regulatory framework for cryptocurrencies. The development comes after years of complaints from the crypto industry, which has criticized U.S. officials for regulating by force rather than providing regulatory clarity. Meanwhile, former President Donald Trump, who is running for re-election against Harris, is actively seeking support from crypto voters and has several crypto-related initiatives underway.
*This is not investment advice.