Bitcoin Nears Three-Month High as US Election Looms

Bitcoin has seen a significant increase since September, fueled by central banks' easing monetary policies and market speculation about the upcoming U.S. presidential election. In the past week, Bitcoin rose by 9%, contributing to a total increase of 31% since its low in September. This surge has been driven by investor expectations of positive outcomes related to a potential Trump victory in the November election.

The world’s largest cryptocurrency briefly topped $69,000 before settling at around $67,000, its highest since late July. Bitcoin is now just 8% below its all-time high of $73,000, which was reached in March amid optimism over the approval of a spot Bitcoin ETF and anticipation of a major Bitcoin halving event expected in April.

This upward trend corresponds with central banks easing policies. The Federal Reserve's shift to monetary loosening has boosted Bitcoin's momentum. China's recent stimulus measures and rate cuts have also supported the cryptocurrency rally, with liquidity being a key driver. Historically, Bitcoin has thrived during monetary easing, such as the 2020 pandemic surge, where its price soared 1,600% to $64,000 by April 2021.

The so-called "Trump trade" has been a key factor in Bitcoin’s recent performance. Betting markets have increasingly favored a Trump victory, leading investors to accumulate Bitcoin and related assets in anticipation of more favorable US cryptocurrency regulations under his potential administration. Some analysts foresee Bitcoin reaching $100,000 if current trends persist.