Bitcoin has broken through $71,000 for the first time since June, thanks to inflows into dedicated exchange-traded funds (ETFs) and speculation about the potential outcomes of next week's U.S. midterm elections. On Tuesday, the largest digital asset rose by more than 2%, changing hands at $71,310. Ethereum, the second-ranked cryptocurrency, and the meme-favorite Dogecoin both gained about 4%.
On Monday, Bitcoin had climbed above $70,000 as investors prepared for MicroStrategy's earnings report.
According to Coin Metrics data, Bitcoin's price increased by about 3% on Monday, reaching $69,925.00. The price touched $70,207.02 during the day and has been fluctuating since.
Stocks tied to cryptocurrency prices saw little change in extended trading. On Monday's regular trading, cryptocurrency trading platform Coinbase rose by 5%, and Bitcoin proxy agency MicroStrategy jumped nearly 9%.
Bitcoin last touched $70,000 in June of this year. Its price has tested this level several times this year, reaching a record high of $73,797.68 in March. Previous attempts to break through $70,000 were fleeting.
Bitcoin has been confined to a narrow range between $55,000 and $70,000. However, with U.S. stock markets hitting new highs this month and another interest rate policy decision from the Federal Reserve on November 7th, the dollar could be poised for a breakthrough.
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This outcome is widely seen as a key catalyst for Bitcoin prices, with investors closely watching and waiting. Last week, Bitcoin soared to $70,000 but ultimately failed to reach this threshold.
Elsewhere, investors are watching for earnings reports from Coinbase and MicroStrategy, scheduled for release on Wednesday. On Monday, MicroStrategy, which engages in high-risk trading on Bitcoin prices, recorded its highest closing price since March 15, 2000.
MicroStrategy is looking to extend its seven-week winning streak, which would be the longest since an 11-week winning streak that ended in late October 2010.
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