The largest digital asset climbed about 1% before paring the advance to trade at US$69,840 as of 7.23am on Tuesday in Singapore. Smaller tokens including second-ranked Ether also posted modest gains.

Bitcoin is viewed by some as a so-called Trump trade because Republican presidential nominee Donald Trump embraced digital assets during campaigning. Trump is ahead in prediction markets, while polls show a neck-and-neck race against Democratic candidate vice-president Kamala Harris.

The token drew succor from an overnight rally in stocks and is continuing to “price in a Donald Trump election victory,” Tony Sycamore, a market analyst at IG Australia Pty, wrote in a note. Bitcoin needs a sustained break past US$70,000 to boost confidence that it can rally past March’s record of US$73,798, he added.

Trump has vowed to make the US the crypto capital of the planet. Harris has adopted a more measured approach, pledging to support a regulatory framework for the industry. Their positions contrast with a crackdown on the sector under president Joe Biden.

Options traders have increased bets that Bitcoin will reach a peak of US$80,000 by the end of November regardless of who wins the election. Implied volatility around Election Day on Nov 5 is elevated. Spot-Bitcoin ETFs in the US have attracted about US$3.1 billion in net inflows so far this month.

Bitcoin has jumped 66% in 2024 and lately weathered scaled back wagers on Federal Reserve interest-rate cuts as well as a report of greater US scrutiny of Tether, a linchpin stablecoin for crypto trading.