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Bitcoin BTCUSD+2.31% topped $71,000 for the first time since early June as excitement about the U.S. presidential election draws investors to the cryptocurrency.

The token, which is the largest by total market capitalization, has risen 4.3% over the past 24 hours to $71,217. It’s trading off its record high of just under $74,000 it hit in March.

Bitcoin has climbed about 12% since the beginning of October, with the Nov. 5 election looming. Over that period, political futures betting markets have shifted in favor of former President Donald Trump, although their gauges are relatively thinly traded and a reflection of users’ views.

BitcoinSource: CoinDeskAs of Oct. 29, 5:58 a.m. ET

May 2024Oct.52,50055,00057,50060,00062,50065,00067,50070,000$72,500

Many crypto bulls are rooting for the Republican nominee because he’s done a spectacular U-turn on the digital asset sector this year, having previously slammed it as a scam. In late July, Trump pledged to set up a Bitcoin strategic reserve and fire Securities and Exchange Commission Chair Gary Gensler, who’s seen as a digital-asset hawk.

Vice President Kamala Harris’ campaign also has embraced cryptocurrencies in a bid to appeal to young, blockchain-friendly voters. The Democratic candidate touted crypto as one of the “industries of the future” that she’ll support in her economic plan last month.

“The market is anticipating that the future administration, whether led by Trump or Harris, might adopt a friendlier stance toward the cryptocurrency sector,” Bitget Research chief analyst Ryan Lee said on Tuesday. “Both candidates have expressed a commitment to providing clearer regulatory frameworks for digital assets, and Trump, in particular, has actively sought support from the crypto community. This political context has further boosted positive market sentiment, adding to Bitcoin’s momentum.”

The recent rally also has been driven by inflows into spot Bitcoin exchange-traded funds, which launched in January to give financial advisors and other institutional investors access to the token for the first time. Investors have poured $2.4 billion into the trading vehicles over the past six days, according to data from Bitget.

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John Patrick Mullin, CEO of blockchain company Mantra, said he thinks $100,000 is now a “logical target” for Bitcoin, but it’ll depend on how aggressively the Federal Reserve cuts interest rates as it winds down its battle against inflation. Lower borrowing costs tend to boost risk-on assets like cryptocurrencies because their relatively higher returns are more appealing to investors.

Crypto-related stocks also were trading higher in premarket trading. Major exchange Coinbase 

COIN

+5.39%
 gained 3.4%, online trading platform Robinhood 

+3.03%
 was up 1.5%, and Bitcoin proxy MicroStrategy 

+8.96%
 jumped 5.3%. Futures for the benchmark S&P 500 index were down slightly.

Bitcoin’s fellow large-cap token Ethereum 

ETHUSD

+4.25%
 climbed 4.4% to $2,618.

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Write to George Glover at [email protected]