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Bitcoin climbed above $70,000 as investors braced themselves for MicroStrategy earnings and counted the days to the U.S. presidential election.
The price of bitcoin was last higher by about 2% at $71,048.36, according to Coin Metrics. Ether jumped 5%.
Stocks tied to the price of the cryptocurrency rose in tandem with it in premarket trading. Crypto exchange platform Coinbase and bitcoin proxy MicroStrategy advanced 3% and 5%, respectively.
Bitcoin has struggled to reclaim $70,000 this year
The last time bitcoin touched $70,000 was in June. It has tested that level several times this year, after hitting a record in March of $73,797.68, but earlier forays above $70,000 have been mere blips.
Optimism is building ahead of the U.S. presidential election next week. Bitcoin has been confined to a tight range between $55,000 and $70,000. Bitcoin has also benefitted 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.
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. Last week, bitcoin surged toward $70,000, but it ultimately fell short of the threshold.
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 5% in the past week. The digital asset is now on pace to end October up 12%, which would make it its best month since May.