Bitcoin Surges Above $71K as Election Speculation and Strong Technicals Fuel Rally
Bitcoin hit a five-month high on Tuesday, buoyed by mounting expectations of a Republican victory in the upcoming U.S. elections and favorable technical indicators. The cryptocurrency briefly peaked at $71,579.0 before slightly easing to $71,244.0 by 08:02 ET (13:02 GMT), still significantly above recent levels.
Analysts at Coindesk highlighted substantial purchases by major crypto holders on Binance during Asian trading hours as a driver of this latest price spike.
Election Momentum Lifts Bitcoin The market appears optimistic about a possible Trump win over Harris in the November 5 election, as online predictions and polls reflect a surge in Trump’s support. His campaign’s crypto-friendly stance is attracting attention, although Harris has also outlined plans for crypto regulations, suggesting benefits for the sector regardless of the outcome.
Golden Cross Sparks Optimism for Record Highs A recent “golden cross” formation — when the 50-day moving average surpasses the 200-day moving average — has further fueled bullish sentiment. Bitcoin’s record high of $73,750, last reached in March, could be within reach again, according to analysts.
Altcoins Track Bitcoin’s Rally Broader crypto prices rallied in step with Bitcoin’s climb. Ether gained 3.6%, trading at $2,617.07, while SOL, MATIC, XRP, and ADA saw modest gains of up to 2.1%. Notably, DOGE soared to a five-month high, with trading interest in DOGE futures rising sharply following Elon Musk’s recent endorsement at a Trump rally. Reports credit this spike to increased speculation around DOGE’s potential visibility in a Trump administration, potentially labeled as a “Department of Government Efficiency” or D.O.G.E.
DOGE futures interest surged by over 30% since Sunday, reaching 8 billion tokens in open interest by Tuesday, approaching record levels last seen in April.
Market Dynamics and Rising Open Interest Open interest in DOGE is rising rapidly, alongside price gains, indicating fresh capital inflows. With contracts nearing expiration, increased volatility is anticipated, which could significantly influence price movements.