• Bitcoin flirts with record high due to ‘Trump trade’
• SEC grands access for options on crypto ETFs
• ETF inflows accelerate ahead of US election
• BTCUSD seems ready to enter uncharted territory

Bitcoin the king of Trump trades

Bitcoin gained another 3.85% on Tuesday, extending the latest bullish wave that started on October 26, and nearly hitting its record high of $73,803. What may have encouraged traders of the crypto king to flirt with record levels may be the increasing bets that Donald Trump will return to the White House.

Although Trump is still neck and neck with Vice President Kamala Harris according to opinion polls, the growing odds that the Republican candidate, who is seen as taking a more favorable stance towards crypto assets, are currently adding support.

Trump offered multiple promises relating to cryptos, including a plan for a state bitcoin reserve. Now, the US holds about 1% of overall global bitcoin supply, which is capped at 21mn tokens. Thus, a state bitcoin reserve could mean fewer coins for circulation among investors, thereby higher prices. However, this could also leave traders exposed to large downside risks if the government ever decides to sell a portion of its reserves.

Options on crypto ETFs also help

What may have also boosted cryptos may be the decision by the Securities and Exchange Commission (SEC) regulator less than two weeks ago to grant access to Wall Street to list options tied to three spot bitcoin exchange-traded funds (ETFs).

In January, the US securities regulator approved bitcoin-backed ETFs, allowing bitcoin to wear an institutional suit. The anticipation of the approval led to a massive rally in crypto assets and therefore, more actions introducing cryptos to the elite of the financial world are adding extra fuel to bitcoin’s engines.

It is worth noting that lately, the total bitcoin sport ETF net inflow has accelerated notably according to Coinglass.com, hitting a four-and-a-half-month high yesterday. This suggests that not only retail traders, but also institutional investors are increasing their exposures to cryptocurrency ahead of next week’s presidential election.

Is it time for a new record high?

From a technical standpoint, bitcoin surged yesterday and broke above the key resistance territory of $70,200, which stopped the bulls from marching further north back in July.

The rally fell short of around $200 from touching the record high of $73,803, achieved back on March 13, but the near-term outlook remains overly bullish. Should the chances of Trump becoming US president again continue to increase, the bulls may soon breach the $73,803 zone, entering uncharted territory and perhaps aiming for the round, psychological number of $80,000.

For the outlook to turn back to neutral, the price may need to fall all the way back to and below $65,000. Such a dip may confirm bitcoin’s return within the broadening formation what was in play since March and may allow declines towards the next key support area of $60,200.