Investing.com-- Bitcoin’s price moved marginally on Monday after briefly hitting a three-month high amid increased speculation that Donald Trump will win the 2024 elections, with the token coming back in sight of record highs.
The world’s biggest cryptocurrency rose sharply over the past week as recent polls and prediction markets pointed to a greater chance of a Trump victory, although analysts still called the presidential race too close to call.
Bitcoin slipped 0.2% to $68,219.0 by 09:10 ET (13:10 GMT), and was about $5000 away from a record high. Crossing $70,000 is also set to be a key bullish signal for the token.
Trump bets buoy Bitcoin
Recent polls and prediction markets showed increased odds of a Trump victory over Democratic nominee Kamala Harris. Crypto prediction market Polymarket showed a 60.7% chance of a Trump victory and a 39.1% chance of a Harris victory.
Trump has campaigned on a largely pro-crypto stance, promising to build the future of Bitcoin in America. His campaign also accepts donations in crypto.
The prospect of a Trump victory saw traders betting on more friendly crypto regulations in the U.S.- with regulation being a main point of contention for the industry in recent years, especially amid a series of high-profile lawsuits from the Securities and Exchange Commission and the Department of Justice.
Harris also recently pledged to a regulatory framework for crypto, although more details of her plans were not immediately clear.
Still, with just over two weeks left to the ballot, markets are positioning for a tight presidential election.
This kept investors more favored to safe havens such as the dollar and gold, the latter of which hit a record high on Monday.
Recent capital flows data also showed institutional investors resumed buying into cryptocurrencies over the past week.
Buy Bitcoin, Bernstein analysts say
Bernstein analysts urged investors to build long positions in Bitcoin via ETFs or Bitcoin-related equities, as the cryptocurrency looks to break through resistance ahead of the US election.
“Bitcoin is attempting a break out of the $70K resistance (one more time) and like other risk-on markets, is interpreting rising Trump odds as bullish for crypto," analysts said in a note.
They also highlighted that clear policy support for crypto from the Harris campaign has reduced downside fears.
"Bitcoin ETF (TSX:EBIT) inflows, crypto equity markets and retail trading sentiment is screaming ‘risk-on’,” analysts added.
Bitcoin ETFs saw $2 billion in inflows last week, bringing total year-to-date inflows to $20.5 billion, while assets under management now exceed $63 billion.
Bernstein believes these inflows are increasingly driving demand in Bitcoin spot markets, as asset managers shift their focus toward wealth advisors and warehouses.
Crypto price today: altcoins in the green
Tracking Bitcoin's recent gains, broader crypto prices also climbed Monday as sentiment towards the sector improved.
World no.2 crypto Ether rose 1.7% to $2,694.72, hovering around 2 month highs.
SOL and ADA climbed more than 4% and 2%, respectively, while XRP added 2% and MATIC rose around 1%.
Among meme tokens, DOGE rose over 4%.
Ambar Warrick contributed to this report.