Bitcoin Hits New Peak Amidst US Election Frenzy

Bitcoin has soared to an all-time high of $74, 504, just ahead of the US presidential election on November 3rd. This is a significant jump from its previous high in March, which was $73, 780. The world's top crypto has gained over 9% in the last day and has doubled in price over the past year. The US election is a major factor driving this surge. The race is tight between former President Donald Trump and Vice President Kamala Harris. As of the latest updates, Trump is leading with 198 electoral votes to Harris's 99. Analysts suggest that investors are betting on a "Trump trade, " which favors risky assets like crypto and stocks. Trump has been more vocal about supporting the digital asset industry compared to Harris.According to Matthew Sigel, head of digital assets research at VanEck, there's a sense of momentum building for Trump among business leaders. This is a shift from earlier trends, where Bitcoin's peaks often followed its halving events every four years. During these events, the amount of new Bitcoin created is cut in half, making the asset scarcer. However, this time around, the spike seems to be more influenced by the approval of Bitcoin ETFs (Exchange-Traded Funds). The SEC allowed 10 such funds in January. These funds make it easier for traditional investors to dip their toes into Bitcoin by buying shares that track Bitcoin's price. Since then, over $20 billion has flowed into these funds from investors like BlackRock and Fidelity.