Bitcoin’s price surged to nearly $70,000 with record open interest as the U.S. presidential election approaches. The price of Bitcoin rose by 1.5% in 24 hours, indicating significant increases in futures open interest. This suggests that there is continued money flow into the market, driving up the price of the cryptocurrency.
The broader crypto market also saw gains, with major cryptocurrencies like Solana (SOL) experiencing significant increases. Speculative trading and thematic investments, such as AI-themed memecoins, fueled the rise in prices across the market.
Crypto traders are optimistic about the outcome of the U.S. elections for the cryptocurrency industry. There are expectations of regulatory reforms, especially if Donald Trump wins the election. Bitcoin’s price nearly reached $70,000 on Monday, driven by bullish sentiment surrounding the upcoming elections.
Bitcoin’s price has been steadily rising, reaching $64,000, while gold prices have also been soaring. The ETH/BTC ratio slid to its lowest point since April 2021, raising questions about Bitcoin’s bullish momentum. Despite this, BTC rose by 1.5% in the past 24 hours, indicating a positive trend in the market.
The notional open interest on USD-denominated bitcoin futures reached a lifetime high of $40.63 billion, with open interest in token terms at 592,000 BTC. Cash-margin open interest also reached an all-time high, with futures on the Chicago Mercantile Exchange (CME) accounting for 40% of the total.
Increased open interest in futures bets indicates new money entering the market, confirming an uptrend. This, coupled with a rise in price, suggests a positive outlook for Bitcoin. Traders are establishing new long positions, as indicated by the spike in BTC futures open interest.
A sudden spike in an open interest-based ratio tracked by CryptoQuant shows increased leveraged bets on Bitcoin, signaling higher risk tolerance in the market. This could lead to increased market volatility and higher liquidations in the coming weeks.
The rise in Bitcoin’s price led to higher prices across the broader crypto market. Solana’s SOL experienced a 7% increase, while other major cryptocurrencies like Ether (ETH), Cardano’s ADA, BNB Chain (BNB), and XRP also saw gains. Memecoins like dogecoin (DOGE) and shiba inu (SHIB) added 3%, contributing to the overall market growth.
Traders are closely watching the upcoming U.S. presidential elections, with expectations of a run-up in the days to come. Betting odds favor Republican Donald Trump, with Democrat Kamala Harris trailing behind. Traders believe that a Trump win, along with a Republican sweep of the House and Senate, would be the most positive outcome for the crypto industry.
Macro-economic factors in Japan and China, along with the U.S. elections, are expected to boost BTC prices. Inflation remains weak in Japan, while China has implemented measures to revive economic growth. These factors, combined with the current market trends, are expected to support Bitcoin’s price rally.
Overall, the cryptocurrency market is experiencing a positive trend, driven by increased open interest in Bitcoin futures and a bullish sentiment surrounding the upcoming U.S. elections. Traders are optimistic about the future of the crypto industry, especially if regulatory reforms are implemented.