Bitcoin climbed above $73,000 on Tuesday, approaching its all-time high as the U.S. election approaches.
Bitcoin's price was last up 3.8% at around $72,292.10, according to Coin Metrics. Earlier, Bitcoin rose to $73,601.59, its highest level since its record on March 14.
The rise in Bitcoin prices has triggered a wave of short liquidations, which in turn has pushed up the cryptocurrency's price. According to CoinGlass data, the cryptocurrency's short liquidations exceeded $113 million in the past 24 hours.
Cryptocurrency trading platform Coinbase (COIN.US) and Bitcoin "big player" MicroStrategy (MSTR.US) both rose more than 1% on Tuesday.
Bitcoin has been confined to a narrow range of $55,000 to $70,000. Bitcoin has struggled around the $70,000 mark several times this year, and previous attempts to break through the mark have ultimately been short-lived.
Optimism is growing ahead of the U.S. election on November 5. Bitcoin has also benefited from the broader risk appetite in the market, with demand for Bitcoin ETFs returning despite higher interest rates and U.S. stocks hitting new highs this month.
Zach Pandl, head of research at Grayscale Investments, said: "A lot of things are going in the right direction for Bitcoin and cryptocurrencies, including a soft landing for the economy, interest rate cuts by the Federal Reserve, and a possible change in the U.S. regulatory environment regardless of who wins the U.S. election. As long as these trends continue... Bitcoin can continue to hit new highs at the end of the year."
Former U.S. Republican candidate and former President Donald Trump has been courting the cryptocurrency industry this year and has positioned himself as a pro-crypto candidate. Democratic candidate and Vice President Kamala Harris has been more low-key about cryptocurrencies, and the industry is divided over the impact her presidency may have on crypto companies. The election results are widely seen as a key catalyst for Bitcoin prices, but investors have been watching and waiting as the election approaches.
The price of Bitcoin has risen 7% in the past week. The digital asset is currently expected to rise 14% in October, which would be its best month since March this year.
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