Bitcoin approaches $70,000 with speculators eyeing record highs
The original cryptocurrency gained as much as 2.9% to $68,376 on Wednesday
Bitcoin bulls are setting their sights again on the record highs reached in March with optimism building around riskier assets and the looming US elections.
"After six months of price consolidation this year, the stage is set for a perfect storm in favor of Bitcoin and other crypto assets," wrote Blockforce Capital's Brett Munster. He cited a rise in global liquidity, including from China, which has been offering a raft of stimulus measures in recent days in an attempt to boost its economy.
The original cryptocurrency gained as much as 2.9 per cent to $68,376 on Wednesday before paring the increase to trade around $67,800. Bitcoin last traded at $70,000 in July, and reached an all-time high of almost $74,000 in March.
"Global liquidity is on the rise again, with central banks across the world injecting cheap capital into their economies," Munster wrote. "When global liquidity has exceeded its moving average in the past, it has often coincided with significant upward movements in the price of Bitcoin."
Other smaller tokens gained, with Dogecoin jumping around 10 per cent and XRP increasing about 2 per cent.
Adding to the optimism is a pledge this week from Vice President Kamala Harris to support a regulatory framework for cryptocurrencies. The acknowledgment follows years of complaints from the crypto sector that US officials have chosen a path of regulation through enforcement rather than by providing clarity. Former President Donald Trump has actively sought crypto voters during the current presidential race versus Harris and has several ongoing crypto-related endeavors.