Bitcoin rises 4%, approaching its record and topping $72,000 for first time in six months

Bitcoin climbed above $72,000 Tuesday, nearing its all-time high as investors counted the days to the U.S. presidential election.

The price of bitcoin was last higher by nearly 4% at about $72,800, according to Coin Metrics. Earlier, it rose to $72,952, its highest level since March 14, the day it reached its record. CME bitcoin futures contracts are currently trading at $73,635.

Stocks tied to the price of the cryptocurrency rose in tandem with it. Crypto exchange platform Coinbase and bitcoin proxy MicroStrategy advanced 2% each.

Bitcoin is now less than 2% off its March all-time high of $73,797.68. It has wrestled with the $70,000 level several times this year, and earlier forays above that level have turned out to be mere blips.

Bitcoin has been confined to a tight range between $55,000 and $70,000. It has also benefited broader risk-on sentiment in the market, with stocks hitting new highs this month even with rising rates, the return of demand for bitcoin ETFs and another Federal Reserve rate policy decision on Nov. 7.

“Many things are going right for bitcoin and crypto, including a soft landing for the economy, Fed rate cuts, and a likely change in the U.S. regulatory climate regardless of who wins the US election,” said Grayscale Investments head of research Zach Pandl. “As long as these trends continue … bitcoin can continue to make it to new highs into year-end.”

Optimism is building ahead of the U.S. presidential election next week. Republican nominee and former president Donald Trump has been courting the crypto industry this year and presented himself as the pro-crypto candidate. Democratic nominee and Vice President Kamala Harris has been more muted on crypto, and the industry is split on how her potential presidency could affect crypto companies. The outcome is widely viewed as a key catalyst for the price of bitcoin, but investors have watching and waiting as the election approaches.

Elsewhere, investors are watching for earnings from Coinbase and MicroStrategy, both slated for Wednesday. On Monday, MicroStrategy, which trades as a high-beta play on the price of bitcoin, recorded its highest close since March 15, 2000. 

MicroStrategy is looking to extend its seven-week win streak, its longest since rally since an 11-week streak that ended in late October 2010.

Bitcoin’s price has increased 7% in the past week. The digital asset is now on pace to end October up 14%, which would make it its best month since March.