As the 2024 U.S. presidential election gets closer, Bitcoin is showing some positive movement. This morning, during European trading hours, BTC even hit a high of $69,227.

Right now, Bitcoin is trading at $68,270. That’s a slight drop of 0.2% in the last 24 hours, according to CoinGecko. Meanwhile, Ethereum (ETH) is also doing well, trading at $2,713, which is a 2.5% increase.

Experts believe that the upcoming elections are boosting market sentiment. Bitcoin is inching closer to that important $70,000 mark. Avinash Shekhar, Co-founder and CEO of Pi42, shared his thoughts with Decrypt. He mentioned that Bitcoin is nearing a critical resistance level of $70,000, influenced by factors like Kamala Harris’s support for crypto and Donald Trump’s strong chances of reelection.

Shekhar pointed out that Bitcoin is currently priced at $68,700. He attributes this to Harris’s backing of crypto, Trump’s 60% odds of winning, low interest rates, and reduced global tensions. He noted that bullish traders are aiming for $72,000 soon, while bearish traders are looking to protect against a drop below $66,500.

Interestingly, Bitcoin’s open interest (OI) has surged to new highs. This indicates increased participation from crypto derivatives traders. The total OI is now at $40.57 billion, with 593,000 BTC locked in open contracts. This shows a lot of activity in the market, according to data from CoinGlass.

This renewed enthusiasm among traders comes as the presidential election is set for November 5. Right now, former President Donald Trump is leading with a 61.4% chance of winning, compared to Vice President Kamala Harris’s 38.6%, according to Polymarket. Many market participants view Trump’s potential reelection positively, given his administration's favorable stance on cryptocurrencies.

A report shared with Decrypt from Bernstein states that rising odds for Trump are seen as bullish for Bitcoin. Analysts noted that Bitcoin is trying to break through the $70K resistance once again. Like other risk-on markets, it interprets the rising Trump odds as good news for crypto.

Moreover, Kamala Harris’s clear support for cryptocurrency policies has added to this bullish sentiment. It eases worries about a negative regulatory environment, no matter who wins the election.

Retail sentiment has also shifted to a “risk-on” approach. Trading platform Robinhood (HOOD) reported a 10% increase in active traders from the previous quarter. Additionally, crypto trading revenues have skyrocketed by 160% year-over-year. This aligns with the overall market optimism, as many expect the Federal Reserve to cut interest rates further, making risk assets like Bitcoin even more appealing.