Investing.com-- Bitcoin rose on Tuesday to a near five-month high amid growing bets on a Republican victory in the upcoming U.S. elections, while positive technical signals also provided strength.
Bitcoin initially jumped to a near five-month high of $71,579.0, shrugging off recent concerns over reports stating the U.S. government was probing stablecoin major Tether.
The token curbed some gains to trade at $71,244.0 by 08:02 ET (13:02 GMT). Broader cryptocurrency prices also rallied tracking Bitcoin.
A report from Coindesk attributed the price spike to buying by major crypto whales on Binance during Asian hours.
US election watch buoys Bitcoin
The world's largest cryptocurrency was boosted largely by growing speculation that Donald Trump will beat Kamala Harris in the upcoming election, with voting set to take place on November 5.
Online prediction markets favored a Trump victory, while recent polls also showed Trump gaining ground against Harris.
Trump has campaigned on promises of crypto-friendly regulation, which could bode well for the industry in the U.S.
But Harris had recently also pledged to a crypto regulatory framework, spurring bets that the crypto industry will benefit regardless of the election outcome.
Bitcoin forms golden cross, record highs close
Sentiment towards Bitcoin was also encouraged by the formation of a golden cross between the token’s 50-day and 200-day moving average. A golden cross is formed when an asset’s short-term moving average exceeds a longer-term moving average, and usually heralds upward movement in prices.
Tuesday's gains put Bitcoin back in sight of a $73,750 record high hit in March.
The world's biggest cryptocurrency had traded largely rangebound since marking new peaks in March, although its recent gains put it well above a $50,000 to $65,000 trading range seen through most of the year.
Stephen Wundke, Director of Strategy & Revenue at quantitative digital asset investment firm Algoz, urged investors to "buy the story, [and] sell the news."
Wudnke expects the premier cryptocurrency to hit $75,000 by the upcoming US election, pull back to $70,000 within two days, and then rally to $85,000 by Christmas.
"Always remember, there are only 21million and only 12% of the world has a digital wallet currently. There simply aren't enough BTC coins to go around," he noted.
Crypto price today: altcoins track Bitcoin rally
Broader cryptocurrency prices advanced on Tuesday, tracking strong gains in Bitcoin. Ether, the world's biggest altcoin, rose 3.6% to $2,617.07
Other altcoins SOL, MATIC, XRP and ADA added between 0.7% and 2.1%, while among meme tokens, DOGE rallied to a five-month high.
DOGE futures interest surges after Trump rally reference
Speaking of DOGE, futures interest in the meme coin is climbing rapidly, approaching record highs from April as renewed trading excitement builds around the token. Speculation centers on the possibility of the acronym "DOGE" becoming part of Republican Donald Trump’s potential administration.
DOGE’s price has surged 12% over the past 24 hours, according to CoinGecko data, following Elon Musk’s appearance at a Trump rally and a subsequent X post where he used a DOGE avatar. Traders are attributing this rally to “Trump’s popularity,” per the reports.
Since Sunday, DOGE-denominated futures have jumped over 30%, reaching 8 billion tokens by Tuesday morning in Europe, nearing April’s record of 9 billion in open interest.
In terms of stablecoins, bets on DOGE have surged from $850 million to $1.3 billion, per CoinGlass data.
Open interest (OI), the total of outstanding contracts like futures or options yet to be settled, signaling growing interest in an asset. Rising open interest alongside price gains suggests new money entering the market.
As contracts approach expiration, higher open interest can drive volatility as traders may quickly adjust positions, impacting prices significantly.
Musk has drawn closer to Trump in recent months, backing him with donations and endorsements. He has floated the idea of a “Department of Government Efficiency,” or D.O.G.E., to curb government spending.
Ambar Warrick contributed to this report.