On Tuesday, Bitcoin’s price climbed above $70,000 for the first time since June, sparking a strong rally in crypto-related stocks during pre-market trading. The cryptoasset surged 4% to around $71,073, edging closer to its all-time high of $73,737 and boosting investor sentiment across the crypto sector.
Ripple Effect in Crypto Stocks
Bitcoin’s gains have positively impacted major crypto stocks: Coinbase shares rose by 4%, MicroStrategy climbed 5%, and Bitcoin mining companies like Bitfarms, Riot Platforms, and Hut 8 each saw rises of over 3%. Investment vehicles directly tied to Bitcoin’s performance also rallied; the ProShares Bitcoin Strategy ETF gained 2.5%, and the iShares Bitcoin Trust added 2.2%, reflecting renewed investor confidence as Bitcoin edges towards its record levels.
Bitcoin Rallies on Strong ETF Demand and Regulatory Hopes
Analysts credit the price jump to a surge in demand for spot Bitcoin ETFs, which saw a $2.4 billion inflow over the past six days, marking a new record since January 2024. Bitget Research’s chief analyst Ryan Lee noted that this trend underscores strong market support, further bolstered by positive political developments. Both U.S. presidential candidates have signaled interest in clearer crypto regulations, offering the prospect of a more favorable environment for digital assets.
“Both candidates are committed to regulatory clarity for digital assets, with Trump actively courting the crypto community,” said Lee, adding that this support is building market optimism.
Technical Indicators Point to a Bullish Trend
Technically, Bitcoin’s 50-day moving average has risen above its 200-day moving average, a classic bullish signal. Coupled with a high Relative Strength Index, Bitcoin could soon test its yearly high of $73,000.
In short, robust ETF inflows, positive regulatory prospects, and supportive market indicators are aligning to fuel Bitcoin’s upward momentum. However, investors are reminded to remain cautious given the inherent volatility of the crypto market.
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