Bitcoin Surges Past $72,000 Amid Election Enthusiasm; Dogecoin Rises with Musk's Support

Bitcoin has surpassed $72,000 for the first time since early June, driven by heightened investor excitement surrounding the upcoming presidential election. Other cryptocurrencies, including Ethereum and Dogecoin, are also experiencing significant gains.

Bitcoin, the largest cryptocurrency by market capitalization, jumped 4.1% over the last 24 hours, reaching $72,589.91. It is now approaching its all-time high of nearly $74,000 achieved in March. Meanwhile, Ethereum saw a 5.5% increase to $2,651.17, and Solana rose by 3.9% to $181.40. Dogecoin, a meme token frequently associated with Elon Musk, surged 9.7% to 18 cents, following Musk's remarks at a Trump rally where he mentioned potential government budget cuts.

Musk's past comments about leading a “Department of Government Efficiency” have historically boosted Dogecoin’s price, and his recent statements have reignited interest. Over the month of October, Bitcoin has gained about 12%, coinciding with shifting political futures markets favoring Republican nominee Donald Trump, although trading volumes are low and largely reflect individual sentiments.

Many crypto enthusiasts are optimistic about Trump, who has shifted from being a critic to a supporter of cryptocurrency. In July, he proposed creating a Bitcoin strategic reserve and replacing Securities and Exchange Commission Chair Gary Gensler, perceived as a stringent regulator of digital assets. On the other side, Vice President Kamala Harris has also shown support for cryptocurrencies in an effort to connect with younger, blockchain-savvy voters, calling crypto an “industry of the future” in her recent economic strategy.

Regardless of the election outcome, market analysts anticipate a more favorable regulatory environment for cryptocurrencies. Ryan Lee, chief analyst at Bitget Research, noted that both candidates seem committed to establishing clearer guidelines for digital assets, contributing to the positive market sentiment that has propelled Bitcoin’s recent rise.

Additionally, the surge has been fueled by substantial inflows into Bitcoin spot exchange-traded funds, which have provided institutional investors access to the cryptocurrency since their launch in January. In just the past six days, investors have injected $2.4 billion into these trading vehicles, according to Bitget data.

John Patrick Mullin, CEO of blockchain firm Mantra, considers a target of $100,000 for Bitcoin plausible, contingent on how aggressively the Federal Reserve lowers interest rates. Generally, lower borrowing costs make riskier assets like cryptocurrencies more appealing to investors, further encouraging this bullish trend.Bitcoin's value has soared past $72,000 for the first time since June, fueled by election-related excitement and key endorsements, including support from Elon Musk for Dogecoin. As political sentiments shift, both major candidates are indicating a more favorable stance on cryptocurrencies.