Investing.com - Bitcoin price soared by 5% early Tuesday, sparking a rally in U.S.-listed crypto shares as investors set their sights on ambitious new targets for the original cryptocurrency.
The crypto leader broke above $71,000 in Asian morning trading, leading the broader market higher just days before the U.S. election—a moment many traders view as a bullish catalyst for crypto regardless of the outcome.
MicroStrategy Incorporated (NASDAQ:MSTR), the world’s largest corporate backer of Bitcoin, saw its shares jump nearly 9% to reach around $255. America’s biggest crypto exchange Coinbase (NASDAQ:COIN) also saw a strong boost, bouncing up to $205 after a recovery from August lows.
The crypto mining crowd had a good day too, with Riot Platforms (NASDAQ:RIOT) up over 6.7%, Marathon Digital Holdings Inc (NASDAQ:MARA) climbing 4%, and CleanSpark (NASDAQ:CLSK) rising by 5.3%, all riding the wave of positive crypto momentum.
The market movement came as the U.S. stock indexes wrapped the day in positive territory, with the Dow Jones rising 0.7% and both the Nasdaq and S&P 500 advancing by 0.3%.
Bitcoin rally gains revived interest in the cryptocurrency, driving trading volume up to $47.5 billion—almost double what it was just days ago. This surge also triggered over $143 million in liquidated short positions, as traders scrambled to close bets against Bitcoin’s rise. Short positions on Bitcoin alone lost around $73 million, with Ethereum shorts trailing closely, down $39 million, based on CoinGlass data.
Bitcoin is now just 3.4% away from reclaiming its all-time high of $73,700 set back in March. With Donald Trump’s chances for the presidency looking solid and historical data suggesting favorable market conditions, traders are betting on a “perfect storm” for Bitcoin prices next month.
The “Trump trade” narrative is building as well, with analysts noting a growing correlation between Bitcoin’s price movement and a potential Trump victory on Nov. 5. Trump is currently favored over Kamala Harris by a 30% margin on the decentralized betting platform Polymarket, even as national polls show a closer contest with Harris leading by 1.5%.